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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(the “2025 Revolver”). If (i) on or before June 30, 2027 our unrestricted cash falls below a threshold specified in the 2025 Credit Agreement, or (ii) before December 1, 2027 (the “Default Amortization Date”), our 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 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.

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 by Enchanted Rock Holdings, LLC, including a pledge of the equity interests in its subsidiaries.

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. 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.

The 2025 Credit Agreement includes certain
affirmative and restrictive covenants common in such agreements that apply to Enchanted Rock Holdings, LLC 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

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investments or distributions, engage in new businesses other than those reasonably related to those currently engaged in by the Enchanted Rock Holdings, LLC 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.

The 2025 Credit Agreement required us to issue a warrant (the “2025 Credit Agreement Warrant”) to the lender
thereunder (see Note 13—Equity—Warrant Units, to our condensed consolidated financial statements included in this prospectus). Such lender could purchase up to 2,525 common units of Enchanted Rock Holdings, LLC under the 2025 Credit
Agreement Warrant at an exercise price of $0.01 per unit.

At March 31, 2026, we 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. We believe we were in compliance with the covenants of the 2025 Credit Agreement described above at that date. Upon the consummation of
this offering, we expect to repay in full all outstanding principal and accrued interest and associated fees under the 2025 Credit Agreement.

ABL
Credit Facility Commitment

On May 15, 2026, our subsidiary Enchanted Rock Holdings, LLC (the
“Borrower”) entered into a commitment letter (the “Commitment Letter”) with JPMorgan Chase Bank, N.A. (“JPMorgan”), Morgan Stanley Senior Funding, Inc. and/or an affiliate (“MS”), Barclays Bank PLC
(“Barclays”) and HSBC Ventures USA Inc. (“HSBC” and, together with JPMorgan, MS and Barclays, the “Commitment Parties”), pursuant to which the Commitment Parties have agreed, subject to customary conditions, to
provide a three-year senior secured asset-based revolving credit facility in an aggregate principal amount of up to $250.0 million (the “ABL Facility”). JPMorgan will act as administrative agent and, together with MS and Barclays,
as joint lead arranger and joint bookrunner for the ABL Facility. The full amount of the ABL Facility will be available for the issuance of letters of credit. Availability under the ABL Facility will be subject to a borrowing base equal to the sum
of (i) 85% of eligible accounts receivable, (ii) the lesser of 75% of eligible inventory (at the lower of FIFO cost or market) and 85% of the net orderly liquidation value of eligible inventory, and (iii) 100% of unrestricted cash held in a blocked
account with the administrative agent, in each case less customary reserves.

Borrowings under the ABL Facility will be
secured by first-priority liens on substantially all of the assets of the Borrower and its material domestic subsidiaries (subject to customary exclusions), including a pledge of the equity interests in such subsidiaries. The Borrower’s
obligations will be guaranteed by each of its existing and future material domestic subsidiaries (subject to customary exclusions). ERock, Inc. is not expected to guarantee the ABL Facility.

Borrowings under the ABL Facility will bear interest, at the Borrower’s option, at a rate per annum equal to either (i)
Adjusted Term SOFR plus 2.50% or (ii) an alternate base rate plus 1.50%. The ABL Facility will also be subject to a commitment fee of 0.25% per annum on the average daily undrawn portion of the commitments, payable quarterly in arrears, and
customary letter of credit fees.

The ABL Facility will include certain affirmative and negative covenants customary for
facilities of this type, including, among others, (i) an initial minimum liquidity covenant of $75.0 million (subject to stepdowns), which will apply until our fixed charge coverage ratio has exceeded 1.00 to 1.00 for three consecutive fiscal
quarters, and (ii) thereafter, a springing fixed charge coverage ratio covenant of not less than 1.00 to 1.00, which will apply during periods in which excess availability is below the greater of a specified dollar threshold and 12.5% of the line
cap. The ABL Facility will also include springing cash dominion provisions triggered by similar excess availability thresholds or the occurrence and continuance of an event of default, and customary events of default.

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We intend to use borrowings under the ABL Facility for working capital and
general corporate purposes. The closing of the ABL Facility is subject to customary conditions, including the consummation of this offering resulting in gross proceeds to us of at least $200.0 million, minimum excess availability at closing of
$105.0 million, the repayment in full of the 2025 Credit Agreement and the release of all liens securing it, and the execution and delivery of definitive financing documentation. There can be no assurance that the ABL Facility will be entered
into on the terms described above, on a timely basis or at all.

Preferred Units

On July 1, 2018, the principal and accrued unpaid interest of a $10.0 million convertible promissory note issued to
an investor was converted into 25,162 Series A preferred units, each with a stated value of $480 and a liquidation preference totaling $12.6 million. On the same date, we issued an additional 19,167 Series A preferred units with a stated value
of $600 per unit and a liquidation preference of $12.0 million. At March 31, 2026 and 2025, 163,975 Series A preferred units were authorized, issued, and outstanding.

Each Series A preferred unit automatically converts into common units upon the closing of a qualified public offering (an
“Automatic Conversion”). Upon an Automatic Conversion, each Series A preferred unit converts into the number of common units specified in the applicable conversion ratio, without any further action required by the holders.

Upon the occurrence of a redemption event—such as (i) a sale of the Company or an affiliate, (ii) the closing
of a public offering, or (iii) five years following the issuance date of the Series A preferred units—the holders of a majority of the outstanding Series A preferred units may, by written notice to the Company, require the Company to
redeem all outstanding Series A preferred units. The redemption price per unit is calculated to provide the holder with an 8% internal rate of return on the original issue price of the Series A preferred unit.

Cash Flows for the three months ended March 31, 2026 compared to three months ended March 31, 2025

The following table summarizes our cash flows by source (use) for the periods presented:

Three Months Ended March 31, Change

(in thousands, except percentages) 2026 2025 Amount %

Net cash provided by (used in) operating activities $	196,983 $	(8,289	) $	205,272 (2476.4	%)

Net cash used in investing activities (4,082	) (1,181	) (2,901	) 245.6	%

Net cash (used in) provided by financing activities (490	) 9,493 (9,983	) (105.2	%)

Operating Activities