Origin Materials enters €9.48 million secured loan agreement for equipment purchase

Origin Materials, Inc. (NASDAQ:ORGN) announced Wednesday that its wholly owned subsidiary, Origin Closures, LLC, has entered into a secured promissory note agreement with Starlinger & Co Gesellschaft m.b.H. to finance the purchase of equipment used to produce polyethylene terephthalate (PET) sheet.

According to a statement based on a recent SEC filing, the principal amount of the note is €9,476,157.60, which is approximately $11,182,813.58 based on the exchange rate as of September 22, 2025. The note carries an annual interest rate of 10.56% and is secured by a security interest in the purchased equipment. This new debt adds to the company’s existing total debt of $7.49 million, though InvestingPro analysis shows the company maintains a healthy current ratio of 6.37, indicating strong ability to meet short-term obligations.

Repayment will be made in semi-annual installments of principal and interest, due on the last day of April and October each year. The first payment is scheduled for April 2026, with the final payment due in October 2029. The note may be prepaid in whole or in part at any time without penalty.

The agreement includes customary events of default, such as failure to make payments when due or bankruptcy of Origin Closures. In the event of a default, Starlinger may accelerate all amounts due, hold property as security, or seize the financed equipment.

In connection with the note, Origin Materials executed a guaranty agreement in favor of Starlinger. Under this guaranty, Origin Materials guarantees the performance of Origin Closures’ obligations under the note, including payment of principal, interest, and amounts incurred by Starlinger related to the note, such as costs to protect its security interest or expenses resulting from a default.

The agreements became effective Tuesday, when Starlinger executed and delivered the note and guaranty to Origin Materials.

This information is based on a press release statement and details provided in a filing with the Securities and Exchange Commission. While Origin Materials shows strong liquidity metrics, InvestingPro analysis reveals the company has experienced significant share price decline, down 59% year-to-date. InvestingPro subscribers have access to 12 additional key insights about Origin Materials, including detailed analysis of its financial health and growth prospects, available in the comprehensive Pro Research Report.

In other recent news, Origin Materials reported its Q2 2025 earnings, which highlighted a significant revenue shortfall. The company posted revenue of $5.81 million, considerably below the anticipated $29.1 million, although earnings per share of -$0.09 were in line with expectations. In addition to the earnings report, Origin Materials announced it received an extension from the Nasdaq Stock Market to regain compliance with the minimum bid price requirement. The company now has until April 6, 2026, to meet the exchange’s $1.00 minimum bid price rule. This extension follows a previous notification from Nasdaq regarding non-compliance with the rule for 30 consecutive business days. These recent developments are critical for investors monitoring Origin Materials’ financial performance and stock market compliance.

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