Mayville Engineering Company Announces Upsized $250 Million Credit Facility
29 Junio 2023 - 6:00AM
Business Wire
Upsized Credit Facility Provides $50 million of
Additional Borrowing Capacity
Amended Credit Agreement Includes $100 million
Uncommitted Accordion Feature
Mayville Engineering Company, Inc. (NYSE: MEC) (the “Company” or
“MEC”), a leading value-added provider of design, prototyping and
manufacturing solutions serving diverse end-markets, today
announced that it has entered into an amended and restated Credit
Agreement led by Wells Fargo Bank.
Under the terms of the amended and restated Credit Agreement,
the total allowable borrowings under MEC’s credit facility have
increased from $200 million to $250 million. The Credit Agreement
includes an uncommitted accordion feature of $100 million, for a
total borrowing capacity of up to $350 million. The applicable
interest rate on the credit facility is SOFR plus an applicable
interest rate margin range of between 1.25% to 2.75%, subject to
the consolidated total net leverage ratio of the Company. The
amended and restated Credit Agreement matures in June 2028. A
portion of the availability under the upsized credit facility will
be used to finance the previously announced acquisition of
Mid-States Aluminum, together with general corporate purposes.
Further, as stipulated in the amended and restated Credit
Agreement, the Company is allowed a maximum consolidated total
leverage ratio of up to 3.50 to 1.00, up from 3.25 to 1.00,
together with an 0.50 to 1.00 acquisition-related leverage holiday
for each of the four consecutive quarters ending immediately after
consummation of an acquisition, for maximum leverage of 4.00 to
1.00 under the Credit Agreement. As previously disclosed, given the
expected cash generation of MEC pro-forma for its planned
acquisition of Mid-States Aluminum, the Company intends to reduce
its net leverage to between 1.5x and 2.0x within the first 18
months following the close of the Mid-States acquisition.
“Our amended, upsized credit facility provides MEC with
additional liquidity with which to fund both the recently announced
acquisition of Mid-States Aluminum and the profitable growth of our
business,” stated Todd Butz, Chief Financial Officer. “We
appreciate the continued support of our lending syndicate as we
position MEC for sustained, long-term value creation.”
ABOUT MAYVILLE ENGINEERING COMPANY
Founded in 1945, Mayville Engineering Company (MEC) is a leading
U.S.-based, vertically-integrated, value-added manufacturing
partner providing a full suite of manufacturing solutions from
concept to production, including design, prototyping and tooling,
fabrication, coating, assembly and aftermarket components. Our
customers operate in diverse end markets, including heavy- and
medium-duty commercial vehicles, construction & access
equipment, power sports, agriculture, military and other end
markets. Along with process engineering and development services,
MEC maintains an extensive manufacturing infrastructure with 20
facilities across seven states. These facilities make it possible
to offer conventional and CNC (computer numerical control)
stamping, shearing, fiber laser cutting, forming, drilling,
tapping, grinding, tube bending, machining, welding, assembly, and
logistic services. MEC also possesses a broad range of finishing
capabilities including shot blasting, e-coating, powder coating,
wet spray and military grade chemical agent resistant coating
(CARC) painting.
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements that
reflect plans, estimates and beliefs. Such statements involve risk
and uncertainties. Actual results may differ materially from those
contemplated by these forward-looking statements as a result of
various factors. Important factors that could cause actual results
or events to differ materially from those expressed in
forward-looking statements include, but are not limited to:
macroeconomic conditions, including inflation, rising interest
rates and recessionary concerns, as well as ongoing supply chain
challenges, labor availability and cost pressures, and the COVID-19
pandemic, have had, and may continue to have, a negative impact on
our business, financial condition, cash flows and results of
operations (including future uncertain impacts); risks relating to
developments in the industries in which our customers operate;
risks related to scheduling production accurately and maximizing
efficiency; our ability to realize net sales represented by our
awarded business; failure to compete successfully in our markets;
our ability to maintain our manufacturing, engineering and
technological expertise; the loss of any of our large customers or
the loss of their respective market shares; risks related to
entering new markets; our ability to recruit and retain our key
executive officers, managers and trade-skilled personnel;
volatility in the prices or availability of raw materials critical
to our business; manufacturing risks, including delays and
technical problems, issues with third-party suppliers,
environmental risks and applicable statutory and regulatory
requirements; our ability to successfully identify or integrate
acquisitions; our ability to develop new and innovative processes
and gain customer acceptance of such processes; risks related to
our information technology systems and infrastructure; geopolitical
and economic developments, including foreign trade relations and
associated tariffs; results of legal disputes, including product
liability, intellectual property infringement and other claims;
risks associated with our capital-intensive industry; risks related
to our treatment as an S Corporation prior to the consummation of
our initial public offering; risks related to our employee stock
ownership plan’s treatment as a tax-qualified retirement plan; and
other factors described in “Risk Factors” in Part I, Item 1A of our
Annual Report on Form 10-K for the year ended December 31, 2022, as
such may be amended or supplemented in our subsequently filed
Quarterly Reports on Form 10-Q. This discussion should be read in
conjunction with our audited consolidated financial statements
included in the Company’s previously filed Annual Report on Form
10-K for the year ended December 31, 2022. We undertake no
obligation to update or revise any forward-looking statements after
the date on which any such statement is made, whether as a result
of new information, future events or otherwise, except as required
by federal securities laws.
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version on businesswire.com: https://www.businesswire.com/news/home/20230629101550/en/
INVESTOR CONTACT Stefan Neely or Noel Ryan (615) 844-6248
MEC@val-adv.com
Mayville Engineering (NYSE:MEC)
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