Mammoth Energy Services, Inc. announced the execution of a loan and security agreement with Bank7 on October 28, 2026. The agreement was entered into by the company's aviation subsidiaries, Cobra Aviation Services LLC and Leopard Aviation LLC, and provides for senior secured term loan commitments totaling up to $58.0 million.
The facility is structured into two components: a $25.0 million Term Loan A and a $33.0 million Term Loan B. Borrowings under the Term Loan A are available immediately, while Term Loan B is not available at closing and may become available only upon the satisfaction of specific conditions, including Bank7’s sale of a participation interest of at least $10.0 million on acceptable terms and the full advancement of Term Loan A.
No amounts were advanced at the closing of the agreement. The loans bear interest at a variable annual rate equal to the greater of 6.25% and the prime rate published in The Wall Street Journal plus 0.50%. The term loans mature on October 26, 2030, and are amortized over a 48-month period with monthly principal and interest payments beginning in January 2027. Accrued interest is payable in November and December 2026.
The obligations of the Borrowers are joint and several and are guaranteed by Mammoth Energy Services, Inc. The facility is secured by substantially all assets of the Borrowers. Proceeds from the facility are intended to finance or reimburse the acquisition of additional aircraft. Mammoth’s Chief Financial Officer, Mark Layton, noted that as of September 30, the total cost of the company’s aviation portfolio was approximately $134.9 million, which had been funded without debt.
The agreement includes customary affirmative and negative covenants. Beginning December 31, 2026, Cobra must maintain a debt service coverage ratio of at least 1.25 to 1.00. Additionally, Mammoth must maintain at least $25.0 million of unencumbered liquid assets as of the end of each fiscal quarter. The loans may be prepaid without premium or penalty, and Bank7 has the right to accelerate the obligations and exercise remedies against the collateral in the event of a default.
