MEC Amends Credit Agreement to Provide Increased Liquidity and Flexibility
06 Luglio 2020 - 11:00PM
Business Wire
Mayville Engineering Company (NYSE: MEC) (the “Company” or
“MEC”), a leading U.S.-based value added manufacturing partner that
provides a broad range of prototyping and tooling, production
fabrication, coating, assembly and aftermarket components, today
announced that the company has reached an agreement with its senior
lenders to enhance the maximum leverage covenant ratio of its
senior credit facility.
The new agreement will increase the Company’s maximum net
leverage ratio from 3.25 to 4.25 through the fourth quarter of 2020
adjusting quarterly thereafter until returning to the original 3.25
in the fourth quarter of 2021. The total commitment of the
Company’s senior credit facility will remain at $200 million and
the maturity date will remain at September 30, 2024.
“As we continue to monitor the macroeconomic environment
closely, ensuring our borrowing capacity remains a top priority, so
we decided to make this preemptive change,” explained Todd Butz,
Chief Financial Officer. “The increased liquidity, access to
capital and flexibility delivered by this amendment provides an
added level of insurance and puts our Company in a stronger
financial position for the foreseeable future.”
Forward Looking
Statements
This press-release includes forward-looking statements that
reflect plans, estimates and beliefs. Such statements involve risk
and uncertainties. Actual results may differ materially from those
contemplated by these forward-looking statements as a result of
various factors. Important factors that could cause actual results
or events to differ materially from those expressed in
forward-looking statements include, but are not limited to: the
uncertain negative impacts the coronavirus (COVID-19) will have on
our business, financial condition, cash flows and results of
operations; failure to compete successfully in our markets; risks
relating to developments in the industries in which our customers
operate; our ability to maintain our manufacturing, engineering and
technological expertise; the loss of any of our large customers or
the loss of their respective market shares; risks related to
scheduling production accurately and maximizing efficiency; our
ability to realize net sales represented by our awarded business;
our ability to successfully identify or integrate acquisitions;
risks related to entering new markets; our ability to develop new
and innovative processes and gain customer acceptance of such
processes; our ability to recruit and retain our key executive
officers, managers and trade-skilled personnel; risks related to
our information technology systems and infrastructure;
manufacturing risks, including delays and technical problems,
issues with third-party suppliers, environmental risks and
applicable statutory and regulatory requirements; political and
economic developments, including foreign trade relations and
associated tariffs; volatility in the prices or availability of raw
materials critical to our business; results of legal disputes,
including product liability, intellectual property infringement and
other claims; risks associated with our capital-intensive industry;
risks related to our treatment as an S Corporation prior to the
consummation of our initial public offering; risks related to our
employee stock ownership plan’s treatment as a tax-qualified
retirement plan; our ability to remediate the material weaknesses
in internal control over financial reporting identified in
preparing our audited consolidated financial statements included in
our Annual Report on Form 10-K for the year ended December 31,
2019, and to subsequently maintain effective internal control over
financial reporting; and other factors described in “Risk Factors”
in Part I, Item 1A of our Annual Report on Form 10-K for the year
ended December 31, 2019, which may be amended or supplemented by
subsequent Quarterly Reports on Form 10-Q or other reports filed
with the Securities and Exchange Commission (including as so
supplemented and amended in our Quarterly Report on Form 10-Q filed
with the Securities and Exchange Commission on May 6, 2020). This
discussion should be read in conjunction with our audited
consolidated financial statements included in the Company’s
previously filed Annual Report on Form 10-K for the year ended
December 31, 2019. We undertake no obligation to update or revise
any forward-looking statements after the date on which any such
statement is made, whether as a result of new information, future
events or otherwise, except as required by federal securities
laws.
About Mayville Engineering
Company
Founded in 1945, MEC is a leading U.S.-based value-added
manufacturing partner that provides a broad range of prototyping
and tooling, production fabrication, coating, assembly and
aftermarket component. Our customers operate in diverse end
markets, including heavy- and medium-duty commercial vehicle,
construction, powersports, agriculture, military and other end
markets. Along with process engineering and development services,
MEC maintains an extensive manufacturing infrastructure with 20
facilities across eight states. These facilities make it possible
to offer conventional and CNC (computer numerical control)
stamping, shearing, fiber laser cutting, forming, drilling,
tapping, grinding, tube bending, machining, welding, assembly and
logistic services. MEC also possesses a broad range of finishing
capabilities including shot blasting, e-coating, powder coating,
wet spray and military grade chemical agent resistant coating
(CARC) painting.
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Nathan Elwell Lincoln Churchill Advisors (847) 530-0249
nelwell@lincolnchurchilladvisors.com
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