Smart Sand, Inc.SND
Smart Sand, Inc. Debt Disclosure
Debt
Current portion of long-term debt current consists of the following:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| VFI Equipment Financing | $ | 2,276 | $ | 2,286 | |||||||
| Notes payable | 1,847 | 1,036 | |||||||||
| Finance leases | 243 | 232 | |||||||||
| Current portion of long-term debt | $ | 4,366 | $ | 3,554 | |||||||
Long-term debt consists of the following:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| FCB ABL Credit Facility | $ | — | $ | — | |||||||
| VFI Equipment Financing, net | 4,323 | 6,294 | |||||||||
| Notes payable | 4,264 | 2,523 | |||||||||
| Finance lease | 70 | 313 | |||||||||
| Long-term debt | $ | 8,657 | $ | 9,130 | |||||||
FCB ABL Credit Facility
On September 3, 2024, the Company entered into a $30,000 five-year senior secured asset-based credit facility with First-Citizens Bank & Trust Company. The FCB ABL Credit Facility provides for non-amortizing revolving loans in an aggregate principal amount of up to $30,000, subject to a borrowing base comprised of eligible inventory and accounts receivable. Additionally, obligations under the FCB ABL Credit Facility are guaranteed by certain of our wholly-owned domestic subsidiaries and secured by a first-priority security interest in certain non-real estate assets. Borrowings under the FCB ABL Credit Facility bear interest at a rate equal to the secured overnight financing rate (“SOFR”) plus a margin of 2.75%.
The ABL Credit Facility contains a number of covenants that, among other things, restrict our ability to incur liens or other indebtedness, make certain restricted payments, merge or consolidate and dispose of assets. In addition, the FCB ABL Credit Facility requires us in certain limited circumstances to maintain a minimum fixed charge coverage ratio of 1.0. The FCB ABL Credit Facility also contains certain affirmative covenants and events of default customary for facilities of this type. The Company was compliant with all requirements of this facility.
The available borrowing amount under the FCB ABL Credit Facility as of December 31, 2025 was $30,000 and is based on the Company’s eligible accounts receivable and inventory. The Company had no borrowings outstanding and $30,000 available to be drawn under this facility as of December 31, 2025. As of December 31, 2025, the Company was in compliance with all financial covenants. The weighted average interest rate for this facility for the years ended December 31, 2025 and 2024 was 7.72% and 8.20%, respectively.
VFI Equipment Financing
On June 28, 2024, the Company entered into an equipment financing arrangement with VFI with a principal amount of $10,000. The VFI Equipment Financing is legally comprised of a Master Lease Agreement and one lease schedule. The VFI Equipment Financing is considered a lease under article 2A of the Uniform Commercial Code but is considered a financing arrangement for accounting and financial reporting purposes, and not a lease. The collateral under the VFI Equipment Financing includes the majority of the Company’s SmartSystems equipment. The VFI Equipment Financing bears interest at a fixed rate of 11.86%. The Company used the net proceeds to refinance a prior fixed rate facility, and the remainder was added to working capital. The VFI Equipment Financing amortizes to one dollar and will be paid in full on September 30, 2028. The Company will reacquire the underlying equipment on the lease schedule upon maturity for one dollar.
Notes Payable
Notes payable primarily include various financing arrangements to finance the Company’s purchased heavy equipment. All notes payable bear interest at fixed rates between 0.00% and 8.49%.
Finance Leases
See Note 9 - Leases for additional information about the Company’s finance leases.
Future minimum payments as of December 31, 2025 are as follows:
| Year Ended December 31, | FCB ABL Credit Facility | VFI Equipment Financing | Notes Payable | Finance Leases | Total | ||||||||||||||||||||||||
| 2026 | $ | — | $ | 2,940 | $ | 2,160 | $ | 262 | $ | 5,362 | |||||||||||||||||||
| 2027 | — | 2,940 | 1,916 | 65 | 4,921 | ||||||||||||||||||||||||
| 2028 | — | 1,960 | 1,566 | 7 | 3,533 | ||||||||||||||||||||||||
| 2029 | — | — | 939 | — | 939 | ||||||||||||||||||||||||
| 2030 and thereafter | — | — | 238 | — | 238 | ||||||||||||||||||||||||
| Total minimum payments | — | 7,840 | 6,819 | 334 | 14,993 | ||||||||||||||||||||||||
| Amount representing interest | — | (1,138) | (708) | (21) | (1,867) | ||||||||||||||||||||||||
Amount representing unamortized lender fees | — | (103) | — | — | (103) | ||||||||||||||||||||||||
| Present value of payments | 313 | ||||||||||||||||||||||||||||
| Less: current portion | — | (2,276) | (1,847) | (243) | (4,366) | ||||||||||||||||||||||||
| Total long-term debt, net | $ | — | $ | 4,323 | $ | 4,264 | $ | 70 | $ | 8,657 | |||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Mar 4, 2025 | |
| 2023 | Mar 11, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 8, 2022 | |
| 2020 | Mar 3, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Mar 14, 2019 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.