Mayville Engineering Company, Inc. current report, 31 March 2022

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Mayville Engineering Company, Inc. — Form 8-K Summary

Business Context and Reporting Period

Mayville Engineering Company, Inc. filed a Current Report on Form 8-K concerning an amendment to its senior credit agreement. The amendment was entered into on March 31, 2022, and the report was signed on April 1, 2022.

Material Financial and Credit Matters

  • The Company amended its Amended and Restated Credit Agreement dated September 26, 2019, with Wells Fargo Bank, National Association, as administrative agent.
  • The amendment increases the permitted 2022 capital expenditure limit from $35 million to $65 million.
  • The amendment revises the definition of Consolidated EBITDA to add back certain restructuring and impairment charges.
  • The filing does not provide clear amounts for revenue, profit, cash flow, margins, outstanding debt, liquidity, or covenant capacity.

Material Changes, Outlook, and Risks

The amendment provides additional capital expenditure flexibility and may affect the Company’s covenant calculations by permitting specified restructuring and impairment charges to be added back to Consolidated EBITDA. The filing does not provide management guidance, an operating outlook, or details regarding planned capital projects.

The amendment creates or modifies obligations under the Company’s credit arrangements. The filing states that certain lenders and their affiliates have provided, and may continue to provide, commercial banking, investment banking, and financial advisory services for customary fees and expenses.

Important Facts to Verify

  • Review Exhibit 10 for the complete terms of the Fourth Amendment, including all covenant, pricing, maturity, collateral, and borrowing provisions.
  • Determine the Company’s actual capital expenditures and remaining availability under the revised $65 million 2022 limit.
  • Assess the nature and amount of the restructuring and impairment charges eligible for the Consolidated EBITDA add-back.
  • Review subsequent filings for changes in debt balances, liquidity, covenant compliance, and use of the expanded capital expenditure authorization.