Mayville Engineering Company, a leading value-added provider of design, prototyping and manufacturing solutions serving diverse end-markets, entered into an amended and restated Credit Agreement led by Wells Fargo Bank.

Under the terms of the amended and restated Credit Agreement, the total allowable borrowings under MEC’s credit facility have increased from $200 million to $250 million. The Credit Agreement includes an uncommitted accordion feature of $100 million, for a total borrowing capacity of up to $350 million. The applicable interest rate on the credit facility is SOFR plus an applicable interest rate margin range of between 1.25% to 2.75%, subject to the consolidated total net leverage ratio of the Company. The amended and restated Credit Agreement matures in June 2028. A portion of the availability under the upsized credit facility will be used to finance the previously announced acquisition of Mid-States Aluminum, together with general corporate purposes.

Further, as stipulated in the amended and restated Credit Agreement, the Company is allowed a maximum consolidated total leverage ratio of up to 3.50 to 1.00, up from 3.25 to 1.00, together with an 0.50 to 1.00 acquisition-related leverage holiday for each of the four consecutive quarters ending immediately after consummation of an acquisition, for maximum leverage of 4.00 to 1.00 under the Credit Agreement. As previously disclosed, given the expected cash generation of MEC pro-forma for its planned acquisition of Mid-States Aluminum, the Company intends to reduce its net leverage to between 1.5x and 2.0x within the first 18 months following the close of the Mid-States acquisition.

“Our amended, upsized credit facility provides MEC with additional liquidity with which to fund both the recently announced acquisition of Mid-States Aluminum and the profitable growth of our business,” stated Todd Butz, Chief Financial Officer. “We appreciate the continued support of our lending syndicate as we position MEC for sustained, long-term value creation.”