Mesa Laboratories closes restated $200 million secured facility

By Mary-Katherine Stinson

Lexington, Ky., April 8 – Mesa Laboratories, Inc. amended and restated its secured agreement for up to $200 million with a syndicate of banks led by JPMorgan Chase Bank, NA as administrative agent, according to a release and an 8-K filing with the Securities and Exchange Commission.

The credit agreement adds a new $75 million senior secured term loan facility to the company’s existing $125 million senior secured revolving credit facility.

The agreement extends the maturity of the facilities to April 2029.

The term loan is subject to a 10-year amortization schedule. There is no springing maturity relating to the company’s 1.375% convertible senior notes due August 2025.

Both the term loan and the revolver bear interest at SOFR plus an applicable margin ranging from 150 basis points to 350 bps, depending on Mesa Lab’s total net leverage ratio. Initially, the rate will be SOFR plus 300 bps.

There are commitment fees ranging from 20 bps to 35 bps, with the initial rate being 30 bps, also based on leverage.

The amendment modified the facility to permit the proceeds to be used to redeem some or all of the 2025 convertibles. In addition, proceeds are earmarked for normal operating expenditures and can be used for permitted acquisitions.

The amendment also made some changes to the financial covenants.

As of April 5, $75 million is outstanding under the term loan, and $50.5 million is outstanding under the revolver.

J.P. Morgan Chase Bank, Bank of America, NA and PNC Capital Markets LLC are the joint lead arrangers and joint bookrunners.

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

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