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Retail Supplier Reports New Credit Agreement
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On May 6, 2026, Via Renewables, Inc. (the 'Company') and Spark Holdco, LLC ('Spark Holdco', and together with certain subsidiaries of the Company and Spark Holdco, the 'Co-Borrowers') entered into a Credit Agreement (the 'Credit Agreement') with Bank OZK, as administrative agent (the 'Agent'), swing bank, swap bank, issuing bank, joint-lead arranger, sole bookrunner and syndication agent.
Bank OZK, BOKF, N.A., Fifth Third Bank, National Association, The Huntington National Bank, and Woodforest National Bank, N.A. acted as Joint Lead Arrangers.
The Credit Agreement provides for a senior secured credit facility (the 'Senior Credit Facility') which allows the Co-Borrowers to borrow up to $300.0 million on a revolving basis. The Senior Credit Facility provides for working capital loans, loans to fund acquisitions, swingline loans and letters of credit. The Senior Credit Facility expires on May 6, 2029, and all amounts outstanding thereunder are payable on the expiration date.
Borrowings under the Senior Credit Facility bear interest at the following rates depending on the classification of the borrowing provided that at no time shall the interest rate be less than one percent (1.0%) per annum:
• the Base Rate (a rate per annum equal to the greatest of (a) the prime rate, (b) the Federal Funds Rate plus ½ of 1% and (c) Term SOFR for a one month tenor plus 1.0%, provided, that the Base Rate shall not at any time be less than 0%), plus an applicable margin of 1.75% to 2.25% depending on the type of borrowing and in each case based on the Company's Total Leverage Ratio.
• the Term SOFR (a rate equal to the forward looking secured overnight financing rate published by the SOFR administrator on the website of the Federal Reserve Bank of New York or any successor source with either a comparable tenor (for any calculation with respect to a SOFR loan) or a one month tenor (for any calculation with respect to a Base Rate loan)), plus an applicable margin of 2.75% to 3.25% depending on the type of borrowing and in each case based on the Company's Total Leverage Ratio.
The Co-Borrowers are required to pay a non-utilization fee of 0.375% quarterly in arrears on the unused portion of the Senior Credit Facility. In addition, the Co-Borrowers are subject to additional fees including an upfront fee, an annual agency fee, and letter of credit fees.
Among other covenants, the Credit Agreement contains a covenant that requires the maintenance of specified ratios or conditions including:
• Minimum Fixed Charge Coverage Ratio. The Company must maintain a minimum fixed charge coverage ratio of not less than 1.25 to 1.00. The Minimum Fixed Charge Coverage Ratio is defined as the ratio of (a) Adjusted EBITDA minus (b) the sum of, among other things, earn-out payments, certain restricted payments, and taxes to (c) the sum of, among other things, consolidated interest expense and current maturities of long term debt.
• Maximum Total Leverage Ratio. The Company must maintain a ratio of (x) the sum of all consolidated indebtedness (excluding eligible subordinated debt and letter of credit obligations), plus (y) gross amounts reserved for civil and regulatory liabilities identified in filings with the Securities and Exchange Commission, to Adjusted EBITDA of no more than 3.00 to 1.00.
A copy of the Credit Agreement was filed as part of an 8-K filed by Via on May 8
The Company previously entered into a prior, separate credit agreement, dated June 30, 2022, by and among the Company, Spark Holdco and the other co-borrowers party thereto, Woodforest National Bank, as administrative agent, an issuing bank, sole bookrunner and syndication agent, and Woodforest National Bank and BOKF, NA as joint lead arrangers, and the banks party thereto (as amended, the 'Prior Credit Agreement').
On May 6, 2026, in connection with entering into the Senior Credit Facility described above, the Company terminated the Prior Credit Agreement.
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May 8, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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