Company: WBI
Filing Date: 2025-09-08
Form Type: S-1/A
Source: 0000950170-25-113383
Chunk: 192

Company: WaterBridge Infrastructure LLC
Filing Date: 2025-09-08
Form: S-1/A
Chunk 192
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 on either (i) Term SOFR or (ii)

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Base Rate, plus an applicable margin, which exposes us to interest rate risk to the extent we have borrowings outstanding under our WBM Revolving Credit Facility and/or NDB Revolving Credit Facility.

As of June 30, 2025, we had (i) $573.6 million of outstanding borrowings under the NDB Term Loan with a weighted average interest rate of 9.54%; (ii) $35.0 million of outstanding borrowings under the NDB Revolving Credit Facility with a weighted average interest rate of 8.67%; (iii) $1,147.1 million of outstanding borrowings under the WBM Term Loan with a weighted average interest rate of 10.51%; and (iv) no borrowings under the WBM Revolving Credit Facility with a weighted average interest rate of 9.06%. 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 $17.7 million per year. See “—Debt Instruments” for more information.

Critical Accounting Estimates

The preparation of our financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosures of contingent assets and liabilities. We consider our critical accounting estimates those that require subjectivity and that could inherently influence our financial result based on changes in those estimates.

Impairment of Goodwill and Long-lived assets

We test goodwill for impairment for each of our reporting units on an annual basis on October 31 or when events occur, or circumstances indicate the fair value of a reporting unit may be below its carrying value. We perform the annual assessment using the qualitative method. Where deemed appropriate, we may perform a quantitative assessment that uses market data and discounted cash flow analysis, which involve estimates of future revenues, operating cash flows, terminal value growth rates, capital expenditures projections, discount rates and other assumptions deemed reasonable by management. Changes in these estimates and assumptions or a significant decrease in earnings could materially affect the fair value of goodwill and could result in a goodwill impairment charge. The annual impairment assessment for goodwill does not change our requirements to assess goodwill on an interim date between scheduled annual testing dates if triggering events are present.

Management reviews our long-lived assets, which primarily includes property, plant and equipment and definite-lived