Quarterly report [Sections 13 or 15(d)]

Debt

v3.26.1
Debt
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Debt

4. DEBT

Debt is comprised of the following:

 

 

March 31,
2026

 

 

December 31,
2025

 

ProFrac Holding Corp.:

 

 

 

 

 

 

2029 Senior Notes

 

$

575.0

 

 

$

570.4

 

2022 ABL Credit Facility

 

 

116.1

 

 

 

69.2

 

Equify Notes (1)

 

 

7.1

 

 

 

8.3

 

Finance lease obligations

 

 

3.6

 

 

 

4.1

 

Other

 

 

4.3

 

 

 

8.7

 

ProFrac Holding Corp. principal amount

 

 

706.1

 

 

 

660.7

 

Less: unamortized debt discounts, premiums, and issuance costs

 

 

(11.1

)

 

 

(11.8

)

Less: current portion of long-term debt

 

 

(92.6

)

 

 

(94.1

)

ProFrac Holding Corp. long-term debt, net

 

 

602.4

 

 

 

554.8

 

 

 

 

 

 

 

 

Alpine Subsidiary:

 

 

 

 

 

 

Alpine 2023 Term Loan

 

 

312.5

 

 

 

320.0

 

Other

 

 

0.9

 

 

 

1.0

 

Finance lease obligations

 

 

3.1

 

 

 

4.1

 

Alpine principal amount

 

 

316.5

 

 

 

325.1

 

Less: unamortized debt discounts, premiums, and issuance costs

 

 

(9.1

)

 

 

(10.2

)

Less: current portion of long-term debt

 

 

(55.7

)

 

 

(48.5

)

Alpine long-term debt, net

 

 

251.7

 

 

 

266.4

 

 

 

 

 

 

 

 

Flotek Subsidiary:

 

 

 

 

 

 

Flotek ABL credit facility

 

 

4.7

 

 

 

3.3

 

Finance lease obligations

 

 

0.3

 

 

 

0.4

 

Flotek PWRtek Note (1)

 

 

40.0

 

 

 

40.0

 

Flotek principal amount

 

 

45.0

 

 

 

43.7

 

Less: unamortized debt discounts, premiums, and issuance costs

 

 

(0.4

)

 

 

(0.4

)

Less: current portion of long-term debt

 

 

(4.8

)

 

 

(3.5

)

Flotek long-term debt, net

 

 

39.8

 

 

 

39.8

 

 

 

 

 

 

 

 

Other Subsidiaries:

 

 

 

 

 

 

Revolving credit facility

 

 

2.5

 

 

 

2.9

 

Finance lease obligations

 

 

6.1

 

 

 

6.2

 

Other

 

 

9.4

 

 

 

9.5

 

Other subsidiaries principal amount

 

 

18.0

 

 

 

18.6

 

Less: unamortized debt discounts, premiums, and issuance costs

 

 

(0.4

)

 

 

(0.4

)

Less: current portion of long-term debt

 

 

(3.1

)

 

 

(3.6

)

Other subsidiaries long-term debt, net

 

 

14.5

 

 

 

14.6

 

 

 

 

 

 

 

 

Consolidated:

 

 

 

 

 

 

Total principal amount

 

 

1,085.6

 

 

 

1,048.1

 

Less: unamortized debt discounts, premiums, and issuance costs

 

 

(21.0

)

 

 

(22.8

)

Less: current portion of long-term debt

 

 

(156.2

)

 

 

(149.7

)

Total long-term debt, net

 

$

908.4

 

 

$

875.6

 
(1)
Related party debt agreements.

Senior Secured Notes Due 2029

In January 2026, ProFrac Holdings II, LLC issued an additional $25.0 million aggregate principal amount of its 2029 Senior Notes at par to Beal Bank USA in a private placement to fund capital expenditures with any remaining proceeds used for general corporate purposes. These notes were issued as additional notes pursuant to the original indenture as amended. These new notes and the notes previously issued under the indenture are treated as a single series of securities under the indenture and the new notes have substantially identical terms, other than the issue date, issue price and first payment date, as the existing notes and are secured by a security interest in the same collateral.

2022 ABL Credit Facility

On March 3, 2026, we entered into an amendment to the 2022 ABL Credit Facility pursuant to which, among other changes, (a) the maximum availability under the facility was reduced to $275.0 million, (b) the scheduled maturity date of the facility was extended six months to September 3, 2027, (c) the applicable margin for SOFR rate loans was revised to range from 1.75% to 2.25%, subject to step-ups of 0.25% at three month intervals following the amendment effective date, up to a range from 3.00% to 3.50%, (d) the unused line fee was revised to 0.375% at all times, (e) certain negative covenant exceptions were curtailed or removed and (f) the $15.0 million minimum liquidity covenant was replaced with a $45.0 million minimum availability covenant.

As of March 31, 2026, the maximum availability under the ABL Credit Facility was limited to our eligible borrowing base of $211.7 million with $116.1 million of borrowings outstanding and $15.6 million of letters of credit outstanding, resulting in approximately $80.0 million of remaining availability.

Debt Compliance

Both the 2029 Senior Notes and the ABL Credit Facility contain certain customary representations and warranties and affirmative and negative covenants. As of March 31, 2026, we were in compliance with these covenants and expect to be compliant for at least the next twelve months.

The Alpine 2023 Term Loan contains a covenant commencing with the fiscal quarter ending March 31, 2028, requiring Alpine not to exceed a maximum Total Net Leverage Ratio (as defined in the Alpine Term Loan Credit Agreement) of 2.00 to 1.00. This ratio is generally the consolidated total debt of Alpine divided by Alpine's adjusted EBITDA. Alpine is closely monitoring its forthcoming compliance obligations with this covenant. While there can be no assurance, Alpine believes that it will be able to meet, modify, or further defer this debt covenant.

Restricted Assets

Our Alpine 2023 Term Loan requires us to segregate collateral associated with Alpine and limits our ability to use Alpine's cash or assets to satisfy our obligations or the obligations of our other subsidiaries. We also have limited ability to provide Alpine with liquidity to satisfy its obligations. See “Note 12. Business Segments” for certain financial information for Alpine, which comprises our Proppant Production segment.