Company: WBI
Filing Date: 2025-09-15
Form Type: S-1/A
Source: 0001193125-25-202719
Chunk: 186

Company: WaterBridge Infrastructure LLC
Filing Date: 2025-09-15
Form: S-1/A
Chunk 186
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 on substantially all assets of Desert Environmental and its subsidiaries, a pledge by Desert Holdings of the equity interests of Desert Environmental, and is also guaranteed by each of Desert Environmental’s subsidiaries.

We may elect for outstanding borrowings under the Desert Credit Facility to accrue interest at a rate based on either (i) Term SOFR or (ii) Alternate Base Rate, in each case plus a leverage-based applicable margin between 2.50% and 3.00% per annum for Alternate Base Rate Loans and between 3.50% and 4.00% per annum for Term SOFR Loans. Interest on Term SOFR Loans is payable at the end of the applicable interest period. Alternate Base Rate Loans bear interest at a rate per annum equal to the highest of (i) the Federal Funds Rate, as in effect from time to time, plus 0.50%, (ii) the prime rate, as publicly announced by the lender from time to time and (iii) Term SOFR for a one-month tenor plus 1.00%. Interest on Alternate Base Rate Loans is payable quarterly in arrears.

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Any principal amounts outstanding on the maturity date will become due and payable on such date. Desert Environmental also pays a commitment fee to the lender quarterly in arrears on the daily unused amount of the commitment of the lender of the Desert Revolving Commitments, which is based on Desert Environmental’s leverage ratio then in effect.

Pursuant to the Desert Credit Facility, we are required to comply with various financial and other covenants common to credit agreements, including (i) a fixed charge coverage ratio of at least 1.25 to 1.00 as of the last day of each fiscal quarter, measured on a trailing four quarter basis, (ii) a total leverage ratio no greater than 2.25 to 1.00 as of the last day of each fiscal quarter, measured on a trailing four quarter basis, and (iii) restrictions on the ability to incur debt, grant liens, make dispositions, make distributions, engage in transactions with affiliates, and make investments.

The Desert Credit Facility contains customary events of default, including for the failure of Desert Environmental or other loan parties to comply with the various financial, negative and affirmative covenants under the Desert Credit Facility (subject to the cure provisions set forth therein). During the existence of an Event of Default (as defined in the Desert Credit Facility), the lender may terminate the commitments and/or declare all outstanding