[8-K] CoastalSouth Bancshares, Inc. Reports Material Event

Rhea-AI Filing Summary

Energy Vault (NRGV) filed an 8-K disclosing that its subsidiary, Cross Trails Energy Storage Project, LLC, entered into a $17.8 million senior secured term-loan with Wilmington Trust and a lending syndicate on 23 Jul 2025. The single-draw facility was fully funded at closing and will be used to cover project capex, operating costs, required reserves and permitted sponsor distributions for the Cross Trails battery-storage project.

The loan bears interest at 5.0% (ABR) or 6.0% (SOFR), subject to 200 bp step-ups/step-downs, amortises on a pre-agreed schedule and matures 23 Jul 2032. It is secured by a first-priority lien on substantially all project assets and membership interests. Covenants include restrictions on additional debt, liens and distributions, plus a minimum DSCR of 1.10×. Voluntary prepayment is allowed with make-whole premium; mandatory prepayment events cover insurance proceeds, asset sales, non-permitted debt/equity and other customary triggers. The company issued a press release on 24 Jul 2025 announcing the transaction (Exhibit 99.1).

Positive

• $17.8 million fully funded term-loan secures capital for Cross Trails project without issuing additional equity
• Seven-year tenor with voluntary prepay rights allows refinancing flexibility if rates fall
• Lenient 1.10× DSCR provides covenant headroom during project ramp-up

Negative

• Adds secured debt, increasing leverage and potential subordination for existing unsecured creditors
• Interest can step up by 200 bp, raising cost of capital if performance thresholds are missed
• Mandatory prepayment triggers could force liquidity outflows under adverse scenarios

Insights

Project Finance Analyst

TL;DR: Financing secures capital for storage build-out; leverage rises but terms are standard and covenant headroom looks manageable.

The $17.8 mm facility gives Energy Vault non-recourse, asset-level funding with a seven-year tenor, aligning debt service with project cash flows. Pricing (SOFR+≈350 bp vs. current risk-free) is competitive for an early-stage storage asset, suggesting lender confidence in revenue visibility. The 1.10× DSCR is lenient, providing cushion during ramp-up. Step-up provisions guard lenders if performance lags, while voluntary prepay rights let the sponsor refinance if returns improve. Security package and negative covenants are typical; no parent guarantee limits contagion risk to NRGV’s balance-sheet. Overall impact is moderately positive: project advances without diluting equity, though secured debt increases structural subordination for corporate creditors.

Equity Research Analyst

TL;DR: Small, accretive funding round supports pipeline; equity impact limited given modest size.

The loan equals roughly one quarter of NRGV’s 2024 revenue base, so balance-sheet leverage edges higher but remains below peers. Because proceeds fund a revenue-generating asset, EBITDA should rise ahead of debt service, mitigating dilution. However, interest rate step-ups could pressure returns if DSCR tightens or SOFR resets higher. Investors should monitor covenant compliance and project execution milestones; failure would trigger costly mandatory prepayments. Net, the deal de-risks project delivery and demonstrates bankability of Energy Vault’s technology, offering a small positive signal to the equity story.

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UNITED STATES
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): July 28, 2025

COASTALSOUTH BANCSHARES, INC.

(Exact name of Registrant as Specified in Its Charter)

Georgia			001-42730	57-1184730
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
400 Galleria Pkwy Suite 1900
Atlanta, Georgia				30339
(Address of Principal Executive Offices)				(Zip Code)

Registrant’s Telephone Number, Including Area Code: 678 396-4605

(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:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $1.00 per share		COSO		New York Stock Exchange

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 2.02 Results of Operations and Financial Condition.

On July 28, 2025, CoastalSouth Bancshares, Inc. (the “Company”) issued a press release announcing its results of operations and financial condition for the second quarter ended June 30, 2025. A copy of the press release covering such announcement is attached hereto as Exhibit 99.1 and incorporated by reference herein.

In accordance with General Instruction B.2 of Form 8-K, the information furnished in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing or document.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number		Description
99.1		CoastalSouth Bancshares, Inc. Earnings Release dated July 28, 2025*
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

* Filed herewith.

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.

		CoastalSouth Bancshares, Inc.
Date: July 28, 2025		By:	/s/ Anthony P. Valduga
			Anthony P. Valduga
			Chief Financial Officer & Chief Operating Officer

FAQ

What did Energy Vault (NRGV) announce in its July 2025 8-K?

A subsidiary entered into a $17.8 million senior secured term-loan to fund the Cross Trails energy storage project.

What are the key terms of the new Energy Vault loan?

Interest: 5.0% ABR / 6.0% SOFR; maturity: 23 Jul 2032; first-priority lien on project assets; minimum DSCR: 1.10×.

How will the loan proceeds be used by Energy Vault?

Funds cover project capex, operating costs, reserve accounts, fees and permitted sponsor distributions at closing.

Can Energy Vault prepay the Cross Trails loan?

Yes, voluntary prepayment is allowed anytime with accrued interest, breakage costs and a repayment premium.

What events trigger mandatory prepayment of the facility?

Insurance or condemnation proceeds, large asset sales, non-permitted debt or equity issuances and similar customary events.

Does the loan impact Energy Vault's corporate balance sheet?

Obligations are at the project-level; no parent guarantee was disclosed, limiting direct impact on corporate debt.