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Stabilis Solutions (Nasdaq: SLNG) locks $5M cash in loan collateral account

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

Rhea-AI Filing Summary

Stabilis Solutions, Inc. amended its existing loan agreement with The Huntington National Bank through a Second Modification Agreement. The change tightens a key financial covenant and adds new cash collateral requirements.

The Borrowers must maintain a minimum Fixed Charge Coverage Ratio of 1.20 to 1.00, tested quarterly on a trailing twelve‑month basis starting with the fiscal quarter ending March 31, 2027. The amendment also creates a segregated Cash Collateral Account at the Bank funded with at least $5,000,000 as collateral for obligations under the loan.

Until the Borrowers meet the new coverage ratio for two consecutive fiscal quarters beginning with the quarter ending March 31, 2027, availability under the revolving credit facility is limited to the amount on deposit in the Cash Collateral Account, subject to a cap of $10,000,000. After that, availability will be based on the borrowing base, up to a maximum of $10,000,000, and the Cash Collateral Account will be terminated and released to the Borrowers. In connection with this amendment, the Borrowers paid an upfront fee of $15,000.

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Insights

Stabilis tightens loan terms with new coverage test and $5M cash collateral.

The amendment to Stabilis Solutions’ loan agreement with The Huntington National Bank raises lender protections through both a financial covenant and cash collateral. A minimum Fixed Charge Coverage Ratio of 1.20x, tested quarterly from Q1 2027, becomes a key ongoing condition.

Requiring a segregated Cash Collateral Account of at least $5,000,000 and capping revolver availability at that balance (up to $10,000,000) temporarily ties borrowing capacity directly to pledged cash. This structure persists until the company demonstrates covenant compliance for two consecutive quarters.

Once that test is met, availability reverts to a borrowing‑base formula with a $10,000,000 maximum and the Cash Collateral Account is released. The $15,000 upfront fee is small, but the collateral and covenant mechanics may influence liquidity management and future flexibility, depending on cash levels and earnings coverage once testing begins in 2027.

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 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement Financial
The company incurred a new significant debt or off-balance-sheet obligation.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.

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Understanding 8-K Material Events →
false 0001043186 0001043186 2026-06-29 2026-06-29
 
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): June 29, 2026
 
Stabilis Solutions, Inc.
(Exact name of registrant as specified in its charter)
 
Florida
001-40364
59-3410234
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
 
11750 Katy Freeway Suite 900
Houston, Texas
77079
(Address of principal executive offices)
(Zip Code)
 
832-456-6500
 
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 (see General Instruction A.2. below):
 
☐ 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
Name of each exchange on which registered
Common Stock, $.001 par value
SLNG
The Nasdaq Stock Market LLC
 
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 1.01 Entry into a Material Definitive Agreement.
 
On June 29, 2026, Stabilis Solutions, Inc. (the “Company”) and certain of its subsidiaries, as borrowers (collectively, the “Borrowers”), entered into a Second Modification Agreement and Amendment to Other Loan Documents (the “Second Modification Agreement”) with The Huntington National Bank, as successor by merger to Cadence Bank (the “Bank”), amending that certain Loan Agreement dated as of June 9, 2023, by and among the Borrowers and the Bank (the “Loan Agreement”).

The Second Modification Agreement amends the Loan Agreement to, among other things: (i) revise the financial covenant under the Loan Agreement to require the Borrowers to maintain a minimum Fixed Charge Coverage Ratio of 1.20 to 1.00, tested as of the last day of each fiscal quarter on a trailing twelve-month basis, commencing with the fiscal quarter ending March 31, 2027; and (ii) establish a segregated, blocked deposit account maintained with and under the control of the Bank (the “Cash Collateral Account”), funded with at least $5,000,000, as collateral security for the obligations under the Loan Agreement. Until the Borrowers demonstrate compliance with the minimum Fixed Charge Coverage Ratio for two consecutive fiscal quarters, commencing with the fiscal quarter ending March 31, 2027, availability under the revolving credit facility is limited to the amount on deposit in the Cash Collateral Account (subject to a cap of $10,000,000), after which availability will be determined by the borrowing base, up to a maximum of $10,000,000, and the Cash Collateral Account will be terminated and released to the Borrowers. In connection with the Second Modification Agreement, the Borrowers paid the Bank an upfront fee of $15,000.
 
The foregoing description of the Second Modification Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Second Modification Agreement, which the Company intends to file as an exhibit to its Quarterly Report on Form 10-Q for the fiscal quarter ending June 30, 2026.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
 
The information set forth in Item 1.01 is incorporated herein by reference.
 
Item 9.01 Financial Statements and Exhibits
 
Exhibits:
 
Exhibit No.
Description
   
104
Cover Page Interactive Data File (embedded within the Inline XBRL document).
 
 
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.
 
 
STABILIS SOLUTIONS, INC.
 
By: /s/Andrew L. Puhala
 
Andrew L. Puhala
 
Chief Financial Officer
 
Date: June 30, 2026
 
 

Source: View Original Filing on SEC EDGAR

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