Mesa Laboratories, Inc. (NASDAQ:MLAB) has recently made significant financial moves, as announced in their press release on April 8, 2024. The company closed an amended and restated credit agreement, providing up to $200 million of senior secured debt through a syndicate of banks led by JPMorgan Chase Bank, N.A. The credit agreement includes a $75 million senior secured term loan facility and a $125 million senior secured revolving credit facility, both maturing in April 2029.
Mesa Laboratories, Inc. also entered into separate, privately negotiated transactions to repurchase $75 million aggregate principal amount of its 2025 notes for an aggregate repurchase price in cash of $71.25 million. Following these repurchases, $97.5 million aggregate principal of the company’s 2025 notes will remain outstanding, and the company will have $125.5 million of long-term debt outstanding under its term loan and the revolver.
John Sakys, the Chief Financial Officer of Mesa, stated, "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. We are committed to paying down our debt balances and aim to reduce our total net leverage ratio to below 3x over the next 18 months."
Mesa Laboratories, Inc. is a global leader in the design and manufacture of life science tools and critical quality control solutions for regulated applications in the pharmaceutical, healthcare, and medical device industries. The company offers products and services to help its customers ensure product integrity, increase patient and worker safety, and improve the quality of life worldwide. Following these announcements, the company's shares moved 5.4%, and are now trading at a price of $106.33. For the full picture, make sure to review Mesa Laboratories's 8-K report.
