Quest Resource Holding Corporation Amends Credit Agreements with Monroe Capital Management Advisors, LLC and PNC Bank

On December 30, 2024, Quest Resource Holding Corporation (NASDAQ: QRHC) announced in an 8-K SEC Filing the successful completion of refinancing its debt. The company entered into amendments to its financing agreements with Monroe Capital Management Advisors, LLC and PNC Bank with the aim of reducing interest expenses, extending maturities, and enhancing financial flexibility.

The Monroe Sixth Amendment to the Credit Agreement involved a reduction in the interest rate from SOFR plus 750 basis points to SOFR plus 550 basis points, with the possibility of stepping down to SOFR plus 450 basis points based on leverage. Additionally, the maturity date was extended to June 2030, existing net leverage covenant levels were increased, prepayment premiums were reduced, and a $25 million delayed draw term loan commitment was provided.

Simultaneously, the PNC Fifth Amendment to the Loan, Security, and Guaranty Agreement saw an increase in the revolver commitment from $35 million to $45 million, a reduction in the interest rate by approximately 40 basis points, improvements in borrowing base flexibility, and an extension of the maturity date to December 2029.

In connection with these amendments, PNC Bank and Monroe Capital Management Advisors, LLC entered into the Third Amendment to Intercreditor Agreement to define their relative rights concerning their interests in the collateral under their respective agreements.

The press release attached to the filing highlighted the strategic implications of the refinancing, emphasizing the decrease in the blended interest rate margin by approximately 150 basis points, leading to an annual reduction of interest expense by about $1 million. Company executives expressed confidence in the strengthened balance sheet, which is expected to support long-term organic growth and potential merger and acquisition activities.

Further details on the amended credit agreements, along with the full text of the agreements, were included in the SEC filing for reference by interested parties.

Investors were also reminded to review the Company’s filings with the SEC for comprehensive information on risks and uncertainties associated with the business, including potential factors affecting the environmental services industry and economic conditions.

For further information on the financing agreements, the full content of the 8-K filing can be accessed on the U.S. Securities and Exchange Commission’s website.

Quest Resource Holding Corporation is a national provider of waste and recycling services tailored for larger businesses to aid in meeting their environmental and sustainability objectives. Their offerings include sector-specific solutions that yield tangible business and environmental outcomes. Visit www.qrhc.com for more details on their services.

This press release contains forward-looking statements subject to uncertainties and risks. Investors are advised to refer to the Company’s filings with the SEC for a comprehensive understanding of associated risks and uncertainties.

For Investor Relations queries, contact Joe Noyons of Three Part Advisors, LLC at 817.778.8424.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Quest Resource’s 8K filing here.

Quest Resource Company Profile

Quest Resource Holding Corporation, together with its subsidiaries, provides solutions for the reuse, recycling, and disposal of various waste streams and recyclables in the United States. The company provides disposal and recycling services for motor oil and automotive lubricants, oil filters, scrap tires, oily water, goods destruction, food waste, meat renderings, cooking oil and grease trap waste, plastics, cardboard, metal, glass, mixed paper, construction debris, as well as a large variety of regulated and non-regulated solid, liquid, and gas wastes.