Business Context and Reporting Period
Company: Energy Vault Holdings, Inc. (NYSE: NRGV)
Filing Type: Form 8-K (Current Report)
Date of Report: July 23, 2025
Event: Entry into a Material Definitive Agreement (Credit Agreement) for the Cross Trails Energy Storage Project, LLC, a subsidiary of the Company.
Key Financial Metrics
This filing reports on a specific financing transaction rather than periodic financial performance. Consequently, revenue, profit, cash flow, and margin data are not provided in this document.
| Metric | Value |
|---|---|
| Debt Facility Amount | Approximately $17.8 million |
| Interest Rate (ABR) | 5.00% per annum |
| Interest Rate (SOFR) | 6.00% per annum |
| Maturity Date | July 23, 2032 |
| Minimum Debt Service Coverage Ratio | 1.10:1.00 |
Material Changes
The primary material change is the incurrence of new debt obligations by the subsidiary, Cross Trails Energy Storage Project, LLC. The Company has entered into a senior secured term loan facility to fund the Cross Trails energy storage project. Proceeds are designated for operating costs, reserve accounts, transaction fees, and certain distributions to the project sponsor.
Outlook, Risks, and Covenants
- Collateral: The loan is secured by a first priority security interest in substantially all assets of the Borrower, including project assets, accounts, and membership interests.
- Covenants: The agreement includes customary affirmative and negative covenants limiting additional indebtedness, liens, asset sales, investments, affiliate transactions, and distributions.
- Prepayment Terms: The Borrower may prepay at any time subject to accrued interest, breakage costs, and a repayment premium. Mandatory prepayments are triggered by insurance proceeds, asset sales above thresholds, or non-permitted indebtedness/equity issuance.
- Interest Rate Adjustments: Rates are subject to step-ups or step-downs of 2.00% per annum under certain circumstances.
Investor Verification Checklist
- Verify the specific amortization schedule for the $17.8 million term loan.
- Review the full text of the Credit Agreement (Exhibit 10.1) for detailed definitions of "non-permitted indebtedness" and "asset sales" thresholds.
- Confirm the status of the Cross Trails project and whether the funding meets the minimum debt service coverage ratio of 1.10:1.00.
- Assess the impact of the repayment premium and breakage costs on potential early refinancing or prepayment strategies.