OPAL Fuels revises credit agreement, extends loan terms

In a recent move to enhance its financial flexibility, OPAL Fuels Inc. (current market cap: $409.6M) has amended its existing credit and guarantee agreement, as revealed in an 8-K filing with the U.S. Securities and Exchange Commission. According to InvestingPro data, the company operates with a moderate debt level and maintains a healthy current ratio of 1.25. The amendment, effective as of Monday, was entered into with Bank of America, N.A. serving as the administrative agent, along with several lenders and guarantors.

The adjustment to the credit agreement allows OPAL Fuels to modify certain financial covenants and clarify the use of loan proceeds. With total debt of $265.8 million and annual revenue of $306.96 million, this restructuring comes at a crucial time for the company. It facilitates an organizational restructuring of the guarantors to enable the sale of federal investment tax credits and the pursuit of additional capital in the future. Furthermore, the amendment eases the conditions for making new projects eligible for borrowing and extends the availability period for delayed draw term loans through March 5, 2026. The commencement of repayment for these term loans is now postponed until March 31, 2026.

As part of the amendment, OPAL Fuels paid a one-time fee of $1.25 million to the administrative agent for distribution among the lenders. This strategic financial maneuver is designed to bolster the company’s ability to finance its projects and enhance its capital structure for potential growth opportunities.

OPAL Fuels, known for combining gas and other services, operates in a dynamic energy sector where financial agility can be crucial for sustained growth and development. This revised credit agreement positions the company to better leverage its financial resources in alignment with its strategic objectives.

The information for this article is based on the statements provided in the SEC filing by OPAL Fuels Inc. Currently trading near its 52-week low of $2.27, InvestingPro analysis suggests the stock may be undervalued. It should be noted that forward-looking statements in the filing carry risks and uncertainties, and actual future events may differ from those anticipated in these statements. The company has cautioned readers not to place undue reliance on these forward-looking statements, which do not guarantee future performance. For a comprehensive analysis of OPAL Fuels’ financial health and growth prospects, including 10+ additional ProTips and detailed metrics, check out the full Pro Research Report available on InvestingPro.

In other recent news, OPAL Fuels Inc. has announced its acquisition of a fueling station in Visalia, California, as part of its strategy to expand its renewable natural gas (RNG) dispensing network. The company plans to upgrade the station and supply RNG to Western Milling’s transportation division, OHK Transport, along with other local carriers. This acquisition is aimed at addressing the growing demand for renewable transportation fuels in California’s Central Valley (NASDAQ:CVCY). In another development, OPAL Fuels has entered into a long-term agreement to supply RNG to a leading freight logistics operator. The contract covers the provision of RNG for five new fueling stations, which are expected to generate approximately 12 million gasoline gallon equivalents annually once operational. Two of these stations are set to begin operations soon, with the remaining three to be commissioned within the next six to twelve months. These recent developments highlight OPAL Fuels’ commitment to reducing carbon emissions in the heavy-duty trucking industry and expanding its network of fueling stations across the United States.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.