Mesa Laboratories to repurchase $75 million of 1.375% convertibles

By Mary-Katherine Stinson

Lexington, Ky., April 8 – Mesa Laboratories, Inc. entered into separate, privately negotiated transactions with certain holders of its 1.375% convertible senior notes due August 2025 to repurchase a portion of the notes at a discount, according to a release and an 8-K filing with the Securities and Exchange Commission.

The company will buy back $75 million aggregate principal amount of the notes for $71.25 million in cash.

“After the acquisition of GKE GmbH in October 2023 and GKE China on December 31, 2023, our total net leverage ratio, as calculated per the terms of our credit facility, was less than 3.9x. Consistent with our approach after previous acquisitions, we are committed to paying down our debt balances. We aim to reduce our total net leverage ratio to below 3x over approximately the next 18 months,” chief financial officer John Sakys stated in the release.

Mesa Laboratories used proceeds from a new $75 million senior secured term loan to fund the buyback and plans to use its revolver to repay the remaining notes at maturity.

The partial repurchase is expected to close on April 11.

After closing, $97.5 million aggregate principal of the 2025 notes will remain outstanding.

Mesa Laboratories is a Lakewood, Colo.-based designer, manufacturer and marketer of quality-control instruments and disposable products.

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