Heritage Global Secures $10M C3bank Line of Credit

Heritage Global Inc. (HGBL) entered into a new credit facility with C3bank, National Association, establishing a $10.0 million revolving line of credit for business operations. The agreement, dated September 16, 2026, was disclosed in an 8-K filed with the SEC on September 22, 2026. The facility matures on January 16, 2028, and is secured by a broad pledge of the company's assets and subsidiary equity.

The deal terms define the cost of capital for the period ahead. Interest accrues at a variable rate based on the Wall Street Journal prime rate plus a 1.00% margin. A floor is set at 7.500% per annum, ensuring the effective rate does not drop below that level regardless of market movements. Heritage Global must also pay an annual unused line fee, payable quarterly in arrears starting from the inception date. These terms create a fixed baseline cost for the borrowing capacity, a critical metric for monitoring the company's cash flow obligations against its operational revenue.

Security and Covenants

The lender's protection is extensive. The security interest covers current and future tangible and intangible assets, including inventory, equipment, and accounts. It also includes a pledge of the equity in direct and indirect subsidiaries. This structure limits the company's ability to encumber these assets for other debt or transactions without lender approval. The facility includes customary financial covenants and negative covenants that restrict the company from incurring additional indebtedness or selling assets. Compliance with these covenants is a condition for maintaining access to the full credit line.

What to Watch

The next step in the disclosure process is the filing of the full agreement as an exhibit to the quarterly report on Form 10-Q for the fiscal quarter ended September 30, 2026. Investors should monitor this filing for specific covenant ratios and detailed definitions of the material adverse change clause. The availability of additional draws is conditioned on the company's compliance with representations regarding insolvency and financial condition. The setup from here is the operational use of the funds versus the interest expense, with the January 2028 maturity date serving as the final liquidity milestone for this facility.