Mammoth Energy Services has arranged up to $58 million in senior secured term loans with Bank7 through its aviation subsidiaries, Cobra Aviation Services and Leopard Aviation. The financing is intended to fund acquisitions of additional aircraft and support growth of Mammoth’s aviation leasing platform.
No money was drawn at closing, so the full $58 million is a financing commitment rather than cash already received. Mammoth said its aviation portfolio had a total cost of about $134.9 million as of September 30 and had been funded without debt.
Key details
- Two loan tranches: The facility consists of a $25 million Term Loan A and a $33 million Term Loan B. The company said both may be drawn during the 60 days after closing, but Term Loan B is subject to additional conditions.
- Term Loan B conditions: The $33 million tranche becomes available only after Term Loan A has been fully advanced and Bank7 sells at least $10 million of loan participation interests on terms acceptable to the bank.
- Use of proceeds: Borrowings are intended to finance or reimburse acquisitions of additional aircraft. Once repaid, amounts cannot be borrowed again.
- Interest and repayment: The loans carry a floating annual rate equal to the greater of 6.25% or the Wall Street Journal prime rate plus 0.50%. Interest on outstanding borrowings is payable in November and December 2026; monthly principal and interest payments begin in January 2027, based on a 48-month amortization schedule. The loans mature on October 26, 2030, and may be prepaid without penalty.
- Security and guarantee: Cobra and Leopard are jointly responsible for the debt, and Mammoth guarantees their obligations. The loans are secured by substantially all of the borrowers’ assets, including their aviation assets. Proceeds from collateral sales and certain insurance or casualty events generally must be used to repay the loans, although replacement collateral may be acquired with Bank7’s approval.
- Financial requirements: Starting December 31, 2026, Cobra must maintain a debt-service coverage ratio of at least 1.25 to 1.00. Mammoth, considered on a stand-alone basis, must maintain at least $25 million in unencumbered liquid assets at each fiscal quarter-end.
- Default consequences: If a default occurs, Bank7 can stop further advances, require immediate repayment and take action against the collateral.
Plain-English implications
The arrangement gives Mammoth the option to add debt-backed funding for aviation acquisitions, but it does not provide $58 million of immediate cash: no borrowing occurred at closing, and access to the larger tranche depends on further conditions. The financing also places the aviation borrowers’ assets—and, through its guarantee and liquidity covenant, Mammoth itself—behind the obligations.