Arq, Inc. announced the successful closing of a new asset-based revolving credit facility with MidCap Financial on January 2, 2025. This facility allows Arq to draw up to $30 million, based on a borrowing base tied to eligible accounts receivable and inventory.
The new facility has a five-year term, with an interest rate on the outstanding balance set at Adjusted Term SOFR + 4.50%, subject to a SOFR floor of 2.5%. Proceeds from this facility are intended to refinance Arq's outstanding CF Global Term Loan, which was deemed an inefficient source of funding.
Additionally, the funds will be used to finance ongoing growth capital expenditures and working capital requirements related to the company's strategic growth investment at its Red River plant, as well as to support general corporate purposes. CEO Bob Rasmus stated that this move enhances financial flexibility and substantially reduces the company's cost of capital.
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