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Mistras Group enters new $315 million five-year credit facility
By Wendy Van Sickle
Columbus, Ohio, Aug. 1 – Mistras Group, Inc. entered into a new $315 million credit facility comprising a $125 million five-year term loan A and a $190 million five-year revolver, according to a news release Monday.
The credit facility was led by JPMorgan Chase Bank, NA. Bank of America, NA continued as syndication agent.
The maturity date of the new credit agreement is July 30, 2027. The company’s prior credit agreement was set to mature in December 2023.
The new credit facility expands the total committed credit by almost $100 million at closing, which provides Mistras with the ability to fund future growth initiatives, the company said.
The arrangement also includes a reduction in required term loan amortization, specifically decreasing the required payments to $1.6 million per quarter for years one and two, $2.3 million per quarter for year three and $3.1 million per quarter for years four and five. These reduced amounts compare to $5 million per quarter under the prior credit agreement.
Further, the credit facility provides the company with leverage flexibility by increasing the maximum allowable total funded debt to 4.0 times adjusted EBITDA for the third quarter of 2022 through the second quarter of 2023 measurement periods, with a step down to 3.75 times for the third quarter of 2023 and all periods thereafter. The prior credit agreement had a maximum allowable total funded debt of up to 3.5 times adjusted EBITDA through maturity.
The company also retained a $75 million uncommitted accordion.
Mistras is an engineering services company based in Princeton Junction, N.J.
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