Mistras Group gets amended, restated $125 million revolver due 2016

By Angela McDaniels

Tacoma, Wash., Dec. 29 - Mistras Group, Inc. entered into an amended and restated credit agreement on Dec. 21 that provides it with a $125 million revolving line of credit due Dec. 20, 2016, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

Under certain circumstances, the revolver can be increased to $150 million.

The company can borrow up to $30 million of the facility in currencies other than dollars and use up to $10 million of the facility for letters of credit.

The interest rate is Libor plus 100 basis points to 200 bps. The margin depends on the company's funded debt leverage ratio.

The credit agreement contains financial covenants requiring the company to maintain a funded debt leverage ratio of less than 3 to 1 and an interest coverage ratio of at least 3 to 1.

The credit agreement also limits its ability to, among other things, create liens, make investments, incur more debt, merge or consolidate, make dispositions of property, pay dividends and make distributions to stockholders, enter into a new line of business, enter into transactions with affiliates and enter into burdensome agreements.

The credit agreement does not limit Mistras' ability to acquire other businesses or companies, except that the acquired business or company must be in its line of business, Mistras must be in compliance with the financial covenants on a pro forma basis and, if the acquired business is a separate subsidiary, in certain circumstances the lenders will receive the benefit of a guaranty of the subsidiary and liens on its assets and a pledge of its stock.

Bank of America, NA is the administrative agent and a lender. JPMorgan Chase Bank, NA, Keybank NA and TD Bank, NA are the other lenders.

Mistras is based in Princeton Junction, N.J. It makes technology used to evaluate the structural integrity of infrastructure.

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