Mistras Group amends $235.1 million credit facilities; Libor floor removed

By Wendy Van Sickle

Columbus, Ohio, May 19 – Mistras Group, Inc. amended its existing credit agreement to provide for $253.1 million of credit facilities, including a funded $88.1 million term loan and a $165 million revolving facility, of which $125.1 million was outstanding at March 31, according to a news release.

The credit agreement continues to mature in December 2023.

The amendment removes the 1% Libor floor, which effectively lowers the current all-in cost of borrowing by 90 basis points. The company said this reduction represents an annual interest expense savings of about $1.9 million.

The amendment reduces the revolver by $10 million at closing with an additional $15 million reduction later in 2021.

The amendment also adds a modest step-up in required term loan amortization, increasing the required payment to $3.75 million quarterly for the remainder of 2021 and $5 million quarterly for 2022 and 2023.

Further, the amendment provides the company with leverage flexibility by increasing the maximum allowable total funded debt up to 4x adjusted EBITDA for the second quarter of 2021 through the first quarter of 2022 measurement periods, with a step-down to 3.5x for the Q2 2022 measurement period and all periods thereafter. This compares to the prior allowable funded debt of up to 3.75x for the Q2 2021 measurement and 3.5x for Q3 2021 and all periods thereafter under the previous amendment.

There continues to be a $100 million uncommitted accordion.

Mistras is an engineering services company based in Princeton Junction, N.J.

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