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Item 3 — Quantitative and Qualitative Disclosures About Market Risk
Montauk Renewables, Inc. · 10-Q · Q2 FY2026 · Period ended Jun 30, 2026
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Interest Rate Risk
On March 9, 2026, we repaid in full all outstanding borrowings under the Amended Credit Facility in connection with entering into the New Senior Credit Facility. As a result, we no longer have exposure to variable interest rate risk associated with the Amended Credit Facility.
The New Senior Credit Facility bears interest at a fixed rate of 10.25%. Based on our current expectations regarding borrowings under this facility, we do not expect to have material exposure to changes in market interest rates with respect to amounts outstanding under the New Senior Credit Facility. However, our actual exposure may differ from current expectations depending on, among other factors, future borrowings, potential amendments to the terms of the facility, or the incurrence of additional variable-rate indebtedness.