SEC Filing Document

Company: ERock, Inc.
Ticker: 
CIK: 2110029
Filing Type: S-1
Document Type: S-1
Date Filed: 2026-05-15
Accession Number: 0001193125-26-227199
Exchange: 
SIC Code: 3620
SIC Description: Electrical Industrial Apparatus
URL: https://www.sec.gov/Archives/edgar/data/2110029/000119312526227199/d12401ds1.htm

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(estimated at approximately $50 million), computed at the contractual rate specified in a debt agreement, is added to the principal balance of a debt and recorded as interest expense over the life of the obligation. Thus, the actual payment of PIK interest may be deferred until the time of debt principal repayment. 2025 Credit Agreement On December 22, 2025, the Company entered into a loan and security agreement (the “2025 Credit Agreement”), which provides for a senior secured term loan in the initial principal amount of $30.0 million (the “2025 Term Loan”) and a senior secured revolving credit facility with commitments in the aggregate amount of $30.0 million (the “2025 Revolver”). Borrowings under the 2025 Credit Agreement are secured by a lien on all equipment, inventory, receivables, general intangibles, and substantially all other personal property owned, including a pledge of the equity interests in its subsidiaries. Interest Rate and Fees

Interest under the 2025 Credit Agreement is payable monthly and accrues at a rate equal to (x) in the case of the 2025
Term Loan, the greater of (i) the prime rate plus 2.25% and (ii) 9.50%, and (y) in the case of principal amounts outstanding under the 2025 Revolver, the greater of (i) the prime rate plus 0.25% and (ii) 6.00%. The 2025 Term Loan is
subject to a fee, payable upon the maturity or earlier prepayment of the 2025 Term Loan, in the amount of 7.00% of the initial principal amount of the 2025 Term Loan. Additionally, voluntary prepayments or mandatory prepayments resulting from an
event of default are subject to a prepayment premium equal to 3.00% of the principal amount prepaid if occurring in the first year, 2.00% in the second year, and 1.00% in the third year. The 2025 Revolver is also subject to an unused line fee,
payable quarterly, in the amount of 0.25% of the average unused commitments under the 2025 Revolver. For the three months ended March 31, 2026, the effective interest rate on the 2025 Term Loan was 12.1%, which includes the stated interest rate
and the amortization of the debt discount, capitalized debt issuance costs, and the final payment fee.

Maturity and Amortization

If (i) on or before June 30, 2027 the Company’s unrestricted cash falls below a threshold
specified in the 2025 Credit Agreement, or (ii) before December 1, 2027 (the “Default Amortization Date”), the Company consolidated adjusted EBITDA falls below a threshold specified in the 2025 Credit Agreement, then on the
first day of the month following the occurrence of an event described in the preceding clauses (i) or (ii) (the “Amortization Trigger Date”) the 2025 Term Loan will amortize in 24 equal monthly installments based on a fully
amortizing straight line amortization schedule, with the 2025 Term Loan maturing on the 23rd such

Table of Contents

Enchanted Rock Holdings, LLC

Notes to Condensed Consolidated Financial Statements (Unaudited)

installment after the Amortization Trigger Date. If the Amortization Trigger Date does not occur before the Default Amortization Date, the 2025 Term Loan will amortize in 36 equal monthly
installments based on a fully amortizing straight line amortization schedule and will mature on November 29, 2030.

Covenants

The 2025 Credit Agreement includes certain affirmative and restrictive covenants common in such agreements that apply
to the Company and its subsidiaries, including, among others (i) a minimum adjusted current ratio of at least 1.25:1.00 and (ii) minimum unrestricted cash of $12.5 million, and (iii) subject to certain customary exceptions,
restrictions on the ability to incur debt, grant liens, make investments or distributions, engage in new businesses other than those reasonably related to those currently engaged in by the Company and its subsidiaries, or perform mergers and other
fundamental corporate changes.

The 2025 Credit Agreement contains customary events of default. If an event of default
occurs and is continuing, the lenders may declare all amounts outstanding under the 2025 Credit Agreement to be immediately due and payable, and the outstanding obligations will be subject to a default interest rate increase of 2.00%.

Outstanding Balances and Carrying Values

At March 31, 2026, the Company had $30.0 million of borrowings related to the 2025 Term Loan and no borrowings
related to the 2025 Revolver under the 2025 Credit Agreement. The Company believes it was in compliance with the covenants of the 2025 Credit Agreement described above as of that date. See Note 3 — Fair Value for further detail.

Warrant

The 2025 Credit Agreement required the Company to issue a warrant (the “2025 Credit Agreement Warrant”) to the
lender thereunder (see Note 3 — Fair Value). Such lender could purchase up to 2,525 common units under the 2025 Credit Agreement Warrant at an exercise price of $0.01 per unit.

2024 Credit Agreement

On February 27, 2024, the Company entered into a five-year term credit agreement (the “2024 Credit Agreement”)
that consisted of a $75.0 million senior secured initial term loan and a $30.0 million delayed draw term loan with a maturity date of February 27, 2029. The 2024 Credit Agreement was fully repaid during the year ended
December 31, 2025. As a result, the Company recognized a loss on extinguishment of debt of $12.4 million. There were no amounts outstanding under the 2024 Credit Agreement at March 31, 2026 or December 31, 2025.

2024 Note Purchase Agreement, A&R Note Purchase Agreement and Convertible Notes

On December 27, 2024, the Company entered into a note purchase agreement (the “2024 Note Purchase Agreement”)
with an affiliate investor.

On April 29, 2025, the Company entered into an amended and restated note purchase
agreement (the “A&R Note Purchase Agreement”) which amended and restated the 2024 Note Purchase Agreement and the notes issued thereunder, and pursuant to which the lenders agreed to purchase convertible promissory notes in an
aggregate principal amount not to exceed $65.0 million (the “2025 Convertible Notes”), inclusive of the $20 million of notes issued under the 2024 Note Purchase Agreement.

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Enchanted Rock Holdings, LLC

Notes to Condensed Consolidated Financial Statements (Unaudited)

Key Terms

The 2025 Convertible Notes bear PIK interest at 15.0% per annum, compounding quarterly, by adding accrued interest to
outstanding principal. The notes are convertible into equity securities having rights, privileges, preferences, and restrictions identical to those issued in a future equity financing. Maturity dates are as follows:

• Notes originally issued under the 2024 Note Purchase Agreement: December 27, 2026

• Notes issued on or after the A&R Note Purchase Agreement effective date: April 29, 2027

• As long as senior debt remains outstanding, all notes have an extended maturity date six months following the
stated maturity date of the senior debt.

Embedded Derivatives and Warrants

The Company determined that the convertible notes contain embedded derivative instruments required to be bifurcated under ASC
815, including conversion and redemption features upon an equity financing, liquidity event, maturity, and event of default. These embedded derivative instruments are accounted for as a single compound derivative instrument recorded at fair value,
with changes in fair value recognized in the condensed consolidated statements of operations. In connection with the A&R Note Purchase Agreement, all warrants previously issued under the 2024 Note Purchase Agreement were marked-to-market in April 2025 and written off with initial changes in fair value reflected in the consolidated statements of operations (see Note 3 — Fair Value).

Outstanding Balances and Carrying Values

At March 31, 2026, the Company had issued $35.3 million of convertible notes toward the $65.0 million maximum
aggregate under the A&R Note Purchase Agreement. See Note 3 — Fair Value for further detail.

The Company
believes it was in compliance with all financial covenants under the A&R Note Purchase Agreement at March 31, 2026.

Deferred Financing Costs

Debt issuance costs related to the 2025 Credit Agreement were recorded equally as a contra-liability and as deferred financing
within other assets in the condensed consolidated balance sheets. These costs are amortized over the terms of the respective agreements. Amortization of debt issuance costs was $0.1 million and $0.2 million for the three months ended
March 31, 2026 and the three months ended March 31, 2025, respectively.

The debt discount was recorded as a
contra-liability and netted against the notes payable balance in the condensed consolidated balance sheets, and amortized over the terms of the respective agreements. Debt discount amortization was $1.5 million and $0.4 million for the
three months ended March 31, 2026 and the three months ended March 31, 2025, respectively.

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Enchanted Rock Holdings, LLC

Notes to Condensed Consolidated Financial Statements (Unaudited)

12. MEZZANINE EQUITY

Series A Preferred Units

At March 31, 2026 and December 31, 2025, the Company had issued and outstanding 163,975 Series A Preferred Units,
consisting of 19,167 Series A-1 Preferred Units and 144,808 Series A-2 Preferred Units, reflective of the retroactive adjustment for the stock split effective
April 29, 2025. The Series A Preferred Units were originally issued on July 1, 2018 (the “Original Issue Date”).

The following table summarizes the Company’s Series A Preferred Units authorized, issued, and outstanding: