MISTRAS Group Announces New Expanded Credit Agreement and Enhanced Debt Refinancing | New

  • Increase in available liquidity, with an increase in borrowing capacity of approximately $100 million, to $315 million in total
  • Immediately reduces the effective credit spread by 25 basis points
  • Significantly reduces required quarterly amortization of term loans
  • Adds flexibility to engagements and accelerates timing to enable acquisitions

PRINCETON JUNCTION, NJ, Aug. 01, 2022 (GLOBE NEWSWIRE) — MISTRAS Group, Inc. (NYSE: MG) – a leading multinational “single-source” provider of integrated, technology-enabled asset protection solutions used to optimize the availability and security of critical energy, industrial and public infrastructure – announced today that it and certain of its subsidiaries, as guarantors, entered into a new credit facility with a syndication of banks, led by JPMorgan Chase Bank, NA and with Bank of America, NA, continuing as syndication agent.

The new credit facility consists of an aggregate credit facility of $315 million, including a $125 million 5-year funded Term Loan A and a $190 million 5-year committed revolving facility. The maturity of the new credit agreement is July 30, 2027. The previous credit agreement was due to mature in December 2023.

The new credit facility significantly increases total committed credit by nearly $100 million at closing, giving the company the ability to fund future growth initiatives. The arrangement also includes a significant reduction in required term loan amortization, specifically reducing required payments to $1.6 million per quarter for the first and two years, $2.3 million per quarter for the third year and $3.1 million per quarter for years four and five. These reduced amounts compare to $5 million per quarter of amortization under the Company’s prior credit agreement.

This credit facility also provides the Company with leverage flexibility by increasing the maximum authorized total funded debt to 4.0 times Adjusted EBITDA for the third quarter of 2022 through the second quarter of 2023, with a reduction to 3, 75 times for the third quarter of 2023 and all subsequent periods. The prior credit agreement provided for a maximum authorized total funded debt of up to 3.5 times adjusted EBITDA until maturity. The Company also retained an uncommitted accordion of $75 million.

“We are very pleased to maintain strong banking relationships with each of the seven leading financial institutions included in our banking syndicate,” said Ed Prajzner, Chief Financial Officer (CFO) of MISTRAS Group. “Since expanding our facilities in December 2018 to fund the company’s acquisition of Onstream, we are proud to have repaid nearly $80 million in debt to our banking group, especially at a time when many many of our end markets were weakened by the impact of COVID-19. 19 pandemic. This syndication was significantly oversubscribed and we appreciate the support of our banking group and their willingness to partner with us to create shareholder value. This new credit agreement provides us with sufficient liquidity to fund our growth initiatives. And while the reduction in required amortization of term loans gives us additional leverage flexibility, we anticipate further deleveraging as our current capital allocation strategy is still to apply residual free cash flow to debt service.

“This new funding allows MISTRAS to continue our strategic initiatives in data solutions and renewable energy, allows us to continue to serve our end markets and gives us the opportunity to continue to win new customers and improve the value of our existing customers,” said Dennis Bertolotti, President and Chief Executive Officer (CEO) of MISTRAS Group. “This agreement also provides us with long-term flexibility to drive growth both organically and potentially through strategic acquisitions, return value to our shareholders, and invest in our people and infrastructure.”

MISTRAS continues to invest in data solutions, including the OneSuite™ software ecosystem and Sensoria™ Wind Blade Monitor and Insights Web Portal. This new credit agreement gives the Company the ability to continue to grow and scale these growth initiatives for short and long term success.

About MISTRAS Group, Inc. – A Single Source of Asset Protection Solutions®

MISTRAS Group, Inc. (NYSE: MG) is a leading multinational “single-source” provider of integrated, technology-enabled asset protection solutions, helping to maximize the safety and operational availability of industrial and civil assets the most critical of civilization.

Backed by an innovative data-driven asset protection portfolio, proprietary technologies, a strong commitment to environmental, social and governance (ESG) initiatives, and a legacy of decades of industry leadership, MISTRAS leads clients in the oil and gas, aerospace and defense, renewable and non-renewable energy, civil infrastructure and manufacturing industries to achieve operational and environmental excellence. By supporting those organizations that help power our vehicles and power our society; inspect trusted components for commercial, defense and spacecraft; the construction of real-time monitoring equipment to enable safe movement on bridges; and helping to propel sustainability, MISTRAS helps the world as a whole.

MISTRAS improves value for its customers by integrating asset protection across supply chains and centralizing integrity data through a suite of industrial IoT-connected digital software and monitoring solutions. The company’s core capabilities also include non-destructive field and line inspections enhanced by advanced robotics, laboratory quality control and assurance testing, detection technologies and NDT equipment, engineering services asset and mechanical integrity services, as well as light mechanical maintenance and access services.

For more information on how MISTRAS helps protect civilization’s critical infrastructure and the environment, visit https://www.mistrasgroup.com/.

MEDIA CONTACT:

Nestor S. Makarigakis

Group Vice President of Marketing and Communications

+1 (609) 716-4000 | [email protected]

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