Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
As previously disclosed, on November 9, 2021, Charah Solutions, Inc. (the
"Company") entered into a new Credit Agreement (the "Credit Agreement") with
JPMorgan Chase Bank, N.A. ("JPMorgan"), as administrative agent, the lenders
party thereto and certain subsidiary guarantors named therein. The Credit
Agreement provides for a four-year senior secured revolving credit facility with
initial aggregate commitments from the lenders of $30.0 million. Availability
under the Credit Agreement is subject to a borrowing base calculated based on
the value of certain eligible accounts receivable, inventory, and equipment of
the Company and subject to redeterminations made in good faith and in the
exercise of permitted discretion of JPMorgan. The other material terms of the
Credit Agreement and subsequent amendments were described in the Company's
Current Reports on Form 8-K filed with the Securities and Exchange Commission on
November 10, 2021, August 15, 2022 and November 16, 2022. Such descriptions are
incorporated by reference herein.
The Company elected to draw down $7.5 million on March 1, 2023 and an additional
$1.0 million on March 6, 2023 of the Credit Agreement to fund operating
activities. Immediately following this drawdown, after taking into account the
terms of the Credit Agreement, as amended, and the negative covenants contained
therein, no unused borrowing capacity remained available to the Company under
the Credit Agreement and all other current long-term financing arrangements.
The foregoing description of the Credit Agreement, as amended, is qualified in
its entirety by reference to the full text of such agreement and amendments
which were filed as Exhibits to the Current Reports on Form 8-K filed by the
Company on November 10, 2021, August 15, 2022 and November 16, 2022.
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