Company: WBI
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001193125-25-278007
Chunk: 10

Company: WaterBridge Infrastructure LLC
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 3
Chunk 10
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 not eliminate, the potential effects of the variability in cash flow from operations due to fluctuations in oil and natural gas prices.

Counterparty and Customer Credit Risks

We are subject to risks of loss resulting from nonpayment or nonperformance by our counterparties and customers of their contractual obligations. Our principal exposure to credit risk is through receivables generated by the provision of our water management solutions to our customers. The inability or failure of our significant customers to meet their obligations to us or their insolvency or liquidation may adversely affect our financial results. We examine the creditworthiness of any counterparty and customer and monitor our exposure to such counterparties and customers through credit analysis, and monitoring procedures, including reviewing credit ratings, financial statements and payment history. However, we believe that the credit risk associated with our counterparties and customers is acceptable.

Interest Rate Risks

Our ability to borrow and the rates offered by lenders can be adversely affected by deterioration in the credit markets and/or deterioration of our credit profile rating. We may elect for outstanding borrowings under our OpCo Revolving Credit Agreement to accrue interest at a rate based on either (i) Term SOFR or (ii) Base Rate, plus an applicable margin, which exposes us to interest rate risk to the extent we have borrowings outstanding under our OpCo Revolving Credit Agreement. 

As of September 30, 2025, we had (i) $569.3 million of outstanding borrowings under the NDB Term Loan; (ii) no outstanding borrowings under the NDB Revolving Credit Facility; (iii) $1.1 billion of outstanding borrowings under the SDB Term Loan and (iv) no borrowings under the SDB Revolving Credit Facility. For the nine months ended September 30, 2025, the NDB Term Loan had a weighted average interest rate of 8.34% and the NDB Revolving Credit Facility had a weighted average interest rate of 8.05%. For the period from September 17, 2025 to September 30, 2025, the SDB Term Loan had a weighted average interest rate of 9.31% and the SDB Revolving Credit Facility had a weighted average interest rate of 8.18%. On a pro forma basis, assuming no change in the amounts outstanding, the impact on interest expense of a 1.0% increase or decrease in the weighted average interest rates would be approximately $17.9 million per year. See “— Debt Instruments” for more