Workhorse Group (WKHS) Shifts $10M Between Two Credit Lines

Workhorse and lender Motive GM Holdings II raised the cash-flow credit line to $30M while trimming the customer-order credit line to $20M, keeping total borrowing capacity flat at $50M.

By the FiledFeed automated desk Jun 18, 2026 4:14 AM ET

This summary was generated by AI from the company's SEC filing and may contain errors — always verify against the primary source on SEC.gov.

The short version

Workhorse Group Inc. (WKHS) filed an 8-K on June 17, 2026, disclosing that it amended two existing loan agreements with Motive GM Holdings II LLC on June 16, 2026. The changes shift $10 million in borrowing capacity from the "customer orders" credit line (down to $20M) to the "cash flow" credit line (up to $30M), leaving the combined total unchanged at $50 million. As part of the deal, Workhorse also agreed to issue warrants (rights to buy company stock at a set price) to the lender within 45 days.

Workhorse Group Inc. (WKHS) said it restructured two existing loan agreements with its lender, Motive GM Holdings II LLC, effective June 16, 2026, according to an 8-K filing (a report companies use to disclose major news) filed with the SEC on June 17, 2026.

What Changed

Both loan agreements were originally signed on December 15, 2025. This amendment — the second modification to those agreements — makes one key change: it moves $10 million in available borrowing capacity from one credit line to the other.

The Cash Flow Credit Agreement (a loan tied to the company's general operating cash) had its borrowing limit raised from $20 million to $30 million.
The Customer Order Credit Agreement (a loan tied to specific customer orders) had its borrowing limit lowered from $30 million to $20 million.

The total combined borrowing limit stays the same at $50 million.

New Loan Draw and Interest Terms

The filing notes that a new $10 million loan was made on or around June 16, 2026 under the Cash Flow Credit Agreement. Interest (the cost of borrowing) on that specific $10 million draw will not be due until after September 30, 2026 — meaning Workhorse gets a short delay before it has to start making interest payments on that portion.

Warrants to the Lender

As part of the deal, Workhorse agreed to issue warrants (financial instruments that give the holder the right to buy company stock at a set price in the future) to Motive GM Holdings II LLC or its chosen recipient. The company has up to 45 days from June 16, 2026 to issue the warrants. The exact number of warrants and the specific terms still need to be agreed upon by both parties, according to the filing.

Parties Involved

In addition to Workhorse Group Inc. as the borrower, eleven subsidiaries signed the amendment as guarantors (companies that promise to back the debt if the borrower cannot pay), including Workhorse Technologies Inc., Motiv Power Systems Inc., and others. Motive GM Holdings II LLC is the sole lender on both credit agreements.

Key facts

Amendment date: June 16, 2026; 8-K filed: June 17, 2026

Cash Flow Credit Agreement limit increased from $20 million to $30 million

Customer Order Credit Agreement limit reduced from $30 million to $20 million

Total combined borrowing capacity unchanged at $50 million

Both original credit agreements dated December 15, 2025

New $10 million loan drawn under Cash Flow Credit Agreement on or about June 16, 2026; interest deferred until after September 30, 2026

Workhorse must issue warrants to lender within 45 days of June 16, 2026; number and terms to be mutually agreed

Lender: Motive GM Holdings II LLC

Borrower: Workhorse Group Inc. (WKHS, CIK 0001425287)

Eleven subsidiaries named as guarantors

Why it matters

The amendment does not increase Workhorse's total debt ceiling, but it does redirect available borrowing toward the general cash-flow facility — suggesting the company may need more flexible, operations-linked liquidity rather than order-backed financing. The deferred interest on the new $10 million draw provides some near-term cash relief. However, the requirement to issue warrants to the lender within 45 days is a form of additional compensation that could dilute existing shareholders, though the exact impact is unknown because the number and terms of the warrants have not yet been set. Retail investors should note that these credit lines originated only six months before this second amendment, which signals active and ongoing negotiation with the company's primary lender.

Frequently asked

Did Workhorse Group get more total borrowing capacity from this amendment?

No. The total combined limit across both credit lines stays at $50 million. The amendment only shifts $10 million from the customer-order line to the cash-flow line.

What are the warrants Workhorse agreed to issue?

Warrants are instruments that give the holder the right to buy company stock at a set price in the future. Workhorse agreed to issue them to Motive GM Holdings II LLC within 45 days of June 16, 2026, but the exact number and terms are still to be agreed upon.

When does Workhorse have to start paying interest on the new $10 million loan?

Interest on the $10 million drawn on or about June 16, 2026 is not due until after September 30, 2026, giving Workhorse a short delay before payments begin.

Who are the guarantors on these loans?

Eleven Workhorse subsidiaries are guarantors, including Workhorse Technologies Inc., Motiv Power Systems Inc., Horsefly Inc., and others listed in the filing. Guarantors promise to cover the debt if the main borrower cannot pay.

What the filing reported

1.01 Entry into a Material Agreement

2.03 Creation of a Material Financial Obligation

9.01 Financial Statements & Exhibits