Myers plans $350 million term loan A for Signature Systems purchase

By Sara Rosenberg

New York, Jan. 2 – Myers Industries Inc. plans on getting a new $350 million five-year secured term loan A to fund its acquisition of Signature Systems, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

The company also expects to amend its $250 million senior revolving credit facility in connection with the transaction.

Under the agreement, Signature Systems is being bought for about $350 million, subject to customary adjustments.

Closing is expected in the first quarter of 2024.

Net leverage is anticipated to be around 3x at closing, with free cash flow expected to allow for the reduction of net leverage to under 2x within two years of closing.

Interest coverage is projected to be 4x to 5x in the first year.

Myers is an Akron, Ohio-based manufacturer and distributor of industrial products. Signature Systems is a Flower Mound, Tex.-based manufacturer and distributor of composite ground protection products.

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