OPAL Fuels Inc. closed a $180 million preferred‑stock facility on March 6, 2026, and announced the transaction on March 9, 2026. The deal issued $120 million of preferred stock, of which roughly $100 million was used to redeem the company’s Series A Preferred Units held by Mendocino Capital, LLC, and the remaining $60 million will be available for future drawdowns.
The new Series A Preferred Units carry a 12% annual dividend that compounds quarterly, with a partial payment‑in‑kind option. In addition, the Fortistar affiliate received a warrant for up to 3 million Class A common shares, providing potential upside if the company’s equity value rises.
The financing is intended to support OPAL’s next phase of growth, providing capital to develop new renewable natural gas (RNG) projects and expand its fuel‑station network, particularly in the heavy‑duty trucking sector. By redeeming the Series A units, the company reduces its preferred‑stock obligations while freeing up capital for project execution and infrastructure investment.
Management emphasized the strategic importance of the deal. Jonathan Maurer, Co‑Chief Executive Officer, said, "This financing sets the stage for the company’s next stage of growth. We remain committed to delivering long‑term shareholder value. The new preferred stock facility will enable OPAL Fuels to complete development and construction of new RNG projects and fueling infrastructure to support heavy‑duty transportation." Adam Comora, Co‑CEO, added, "We are building an energy infrastructure platform to address heavy‑duty transportation, historically a hard‑to‑decarbonize sector. At present, RNG and CNG are the most attractive alternatives to replace diesel for the Class 8 trucking market. We are positioned to lead faster adoption in this market which is building long‑term and sustainable intrinsic value for OPAL shareholders."
The transaction comes at a time when OPAL has been managing significant cash burn, with a negative free cash flow of $74.19 million over the last twelve months. The capital raise is therefore critical for sustaining its growth trajectory and addressing its cash burn. As of March 9, 2026, the company’s shares were trading at $2.12, with a market capitalization of $367.6 million. Analysts are expecting Q4 2025 earnings of $0.38 per share and revenue of $98.75 million.
The deal strengthens OPAL’s balance sheet and positions the company to accelerate RNG production and fuel‑station deployment, reinforcing its vertically integrated strategy to provide a cleaner, cheaper, and more accessible fuel solution for heavy‑duty fleets.
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