Charah Solutions, Inc., a leading provider of environmental and maintenance services to the power generation industry, today announced that it has successfully reached an agreement with its lender group to amend its senior secured credit agreement (the “Credit Agreement”), which shall become effective upon satisfaction of certain closing conditions, including, without limitation, the receipt of proceeds from the issuance of Preferred Stock described below. Under the terms of the third amendment (the “Amendment”) to the Credit Agreement, which are more fully described below, the lenders agree to permanently waive the $40 million payment due on March 31, 2020, modify the terms on the existing financial covenants as described below, and remove the cap on the principal amount of the delayed draw term loan (the “DDTL”) that may be outstanding at any given time.

In conjunction with the signing of the Amendment to the Credit Agreement, the Company also announced that it has entered into an agreement with an investment fund affiliated with Bernhard Capital Partners Management, LP (“BCP”), the majority shareholder of the Company, to sell to BCP 26,000 shares of Series A Preferred Stock, par value $0.01 (the “Preferred Stock”) for approximately $25.2 million in a private placement (the “Preferred Stock Offering”).

Subject to receipt of required approvals and other customary conditions, the closing of the Preferred Stock Offering and the effectiveness of the Amendment are expected to occur on or about March 16, 2020. Proceeds from the Preferred Stock Offering will be used for liquidity and general corporate purposes.

“We are very pleased with this amendment to our credit agreement and the private placement of preferred stock, as it increases our financial flexibility, strengthens our balance sheet and positions us well to continue to partner with our customers to meet their operational and remediation needs while better enabling us to capitalize on the Company’s expanding market opportunities,” said Scott Sewell, President and Chief Executive Officer of Charah Solutions. “The commitment and support we have received from our banking partners and key shareholders demonstrate the confidence we share in Charah Solutions’ ability to execute on our strategic plan and deliver on our promises. We look forward to providing further details on these events and updates on our financial performance and other accomplishments during our upcoming fourth quarter earnings.”