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Arq updates covenants on MidCap credit facility

Arq, Inc. amended its revolving credit facility again on March 31, 2026, entering a fifth amendment to its Credit, Security and Guaranty Agreement with MidCap Funding IV Trust and other lenders.

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Arq, Inc. amended its revolving credit facility again on March 31, 2026, entering a fifth amendment to its Credit, Security and Guaranty Agreement with MidCap Funding IV Trust and other lenders. This amendment replaces the existing minimum liquidity covenant with a $2.5 million availability reserve requirement, which will rise to $5 million starting in January 2027.

The amendment also allows certain eligible equipment and defined Rolling Stock to be counted in the borrowing availability calculation and temporarily relaxes the definition of Eligible Accounts to permit higher single-customer concentration until August 2026. The full amendment text is referenced as Exhibit 10.1.

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Item 1.01 Entry into a Material Definitive Agreement Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Availability reserve requirement $2.5 million Initial reserve replacing minimum liquidity covenant
Availability reserve increase $5 million Reserve level beginning in January 2027
Amendment number Fifth amendment Amendment to December 27, 2024 credit agreement
Temporary concentration relief end August 2026 Higher single-customer concentration allowed until this date
Agreement original date December 27, 2024 Date of original Credit, Security and Guaranty Agreement
Revolving Credit Agreement financial
"the Credit, Security and Guaranty Agreement (the "Revolving Credit Agreement"), dated December 27, 2024"
A revolving credit agreement is a flexible loan arrangement where a borrower can borrow, repay, and borrow again up to a set limit, similar to a credit card. It matters because it gives businesses or individuals quick access to funds whenever needed, helping manage cash flow and cover expenses without applying for a new loan each time.
minimum liquidity covenant financial
"the replacement of the existing minimum liquidity covenant with a $2.5 million availability reserve requirement"
A minimum liquidity covenant is a clause in a loan or bond agreement that requires the borrower to keep a certain amount of cash or easily sold assets on hand, like an agreed emergency fund. It matters to investors because it protects lenders and other creditors by reducing the chance of missed payments; falling below the required level can trigger penalties, default, or demands for extra collateral, which can affect a company’s borrowing costs and equity value.
availability reserve requirement financial
"replacement of the existing minimum liquidity covenant with a $2.5 million availability reserve requirement"
Eligible Accounts financial
"amendments to the definition of Eligible Accounts to allow for higher single customer concentration"
Rolling Stock financial
"addition of certain eligible equipment and Rolling Stock (as defined in the Revolving Credit Agreement) to the borrowing availability calculation"
Rolling stock means the movable vehicles used on railways—locomotives, passenger cars, freight wagons and other rail vehicles. For investors it signals a company’s core, high-value assets that generate revenue but also require large upfront cost, regular maintenance and periodic replacement, much like a trucking company’s fleet; changes in the size, condition or utilization of rolling stock can materially affect profits, cash needs and resale value.

FAQ

What did Arq (ARQ) change in its credit agreement on March 31, 2026?
Arq entered a fifth amendment to its revolving Credit, Security and Guaranty Agreement. The changes update covenant mechanics, borrowing availability calculations, and customer concentration limits, potentially affecting how much the company can borrow and on what collateral and account terms.

How does the new availability reserve requirement affect Arq (ARQ)?
The amendment replaces a minimum liquidity covenant with a $2.5 million availability reserve requirement. This reserve, increasing to $5 million in January 2027, must remain unused, effectively reducing immediately accessible borrowing capacity while defining a clearer cushion under the facility.

What changes were made to Arq (ARQ) borrowing availability calculations?
The amendment permits certain eligible equipment and Rolling Stock to be included in the borrowing availability calculation. By counting more asset types as collateral, the facility formula may support higher potential borrowings, subject to the new availability reserve and other existing credit terms.

How did Arq (ARQ) modify its Eligible Accounts definition until August 2026?
The amendment revises the definition of Eligible Accounts to allow higher single-customer concentration until August 2026. This means a larger portion of receivables from one customer can count toward borrowing base calculations during that period, within the lenders’ agreed parameters.

Who are the parties to Arq (ARQ) fifth credit agreement amendment?
The amendment is among Arq, Inc., certain Arq subsidiaries, MidCap Funding IV Trust as agent, and lenders party to the revolving facility. These parties collectively govern the revised covenants, availability calculations, and eligibility definitions under the amended credit agreement.

Where can investors find the full text of Arq (ARQ) Amendment No. 5?
The full Amendment No. 5 is filed as Exhibit 10.1 to the company’s current report. Interested readers can review that exhibit to see detailed covenant language, definitions, and any additional conditions or schedules associated with the revised revolving credit facility.

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U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): March 31, 2026
ARQ, INC.
(Name of registrant as specified in its charter)
Delaware 001-37822 27-5472457
(State or other jurisdiction of incorporation) (Commission File Number) (I.R.S. Employer Identification Number)
8051 E. Maplewood Avenue, Suite 210, Greenwood Village, CO
80111
(Address of principal executive offices)    (Zip Code)
 
Registrant's telephone number, including area code: (720) 598-3500

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) 
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) 
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) 
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) 
Securities registered pursuant to Section 12(b) of the Act:
Class Trading SymbolName of each exchange on which registered
Common stock, par value $0.001 per share ARQNasdaq Global Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐




Item 1.01Entry into a Material Definitive Agreement.
On March 31, 2026, Arq, Inc. (the "Company") and certain of its subsidiaries, entered into the fifth amendment (the "Fifth Amendment") to the Credit, Security and Guaranty Agreement (the "Revolving Credit Agreement"), dated December 27, 2024, as amended on May 6, 2025, December 9, 2025, January 28, 2026, and February 27, 2026, with MidCap Funding IV Trust, in its capacity as agent, the lenders from time to time party thereto, and any entities that become party thereto as Guarantors. The Fifth Amendment provides for, among other things, the replacement of the existing minimum liquidity covenant with a $2.5 million availability reserve requirement, which will increase to $5 million beginning in January 2027, the addition of certain eligible equipment and Rolling Stock (as defined in the Revolving Credit Agreement) to the borrowing availability calculation included in the Revolving Credit Agreement, and certain amendments to the definition of Eligible Accounts to allow for higher single customer concentration until August 2026.
The foregoing description of the Fifth Amendment is only a summary of its material terms and does not purport to be complete and is qualified in its entirety by reference to the full text of the Fifth Amendment, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.
Item 9.01Financial Statements and Exhibits.
(d)Exhibits
Exhibit No.Description
10.1
Amendment No. 5, dated as of March 31, 2026, to Credit, Security and Guaranty Agreement, dated as of December 27, 2024, as amended, by and among Arq, Inc., certain subsidiaries of Arq, Inc., MidCap Funding IV Trust as agent, and the lenders from time to time party thereto.*, ***
104Cover Page Interactive Data File (embedded within the Inline XBRL document).
* – Schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company hereby undertakes to furnish supplemental copies of any of the omitted schedules and exhibits upon request by the SEC.
*** – Portions of this exhibit have been omitted pursuant to Item 601(b)(10) as information that the Company customarily and actually treats that information as private or confidential and is not material.


1

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: April 1, 2026
 Arq, Inc.
 Registrant
 /s/ Robert Rasmus
 Robert Rasmus
 Chief Executive Officer

2

Source: View Original Filing on SEC EDGAR

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