Press release
Transcat Closes New 5-Year $150 Million Syndicated Secured Credit Facility With M&T Bank
Increased Credit Capacity Provides Capital Resources to Execute on Acquisition and Growth Strategies Nearly Doubles Access to Available Capital and Provides
About this update from Transcat, Inc.
[{"type":"text","content":"\nIncreased Credit Capacity Provides Capital Resources to Execute on Acquisition and Growth Strategies\n\n\nNearly Doubles Access to Available Capital and Provides Greater Financial Flexibility\n\n\n ROCHESTER, N.Y.--(BUSINESS WIRE)--\nTranscat, Inc. (Nasdaq: TRNS) (“Transcat” or the “Company”), a leader in test measurement, control and calibration, today announced the successful closing of a new 5-year $150 million secured credit facility with a syndicate led by Manufacturers and Traders Trust Company (“M&T”), a leading superregional bank known for its commitment to fostering economic growth, and includes additional lenders Wells Fargo Bank, N.A. (“Wells Fargo”) and Bank of America, N.A. (“Bank of America”), replacing the existing $80 million credit facility with M&T which has been terminated.\n\n\nThe new credit facility includes a $150 million revolving credit facility (“Credit Facility”). Borrowing options under the Credit Facility include a revolving loan option, a swingline loan option, and letters of credit, each of which is provided on a committed basis, and now permits a temporary increase to the leverage ratio covenant in the event of a material permitted acquisition. Any Base Rate Loan or Swingline Loan under the Credit Facility will bear interest at the Base Rate plus the Applicable Margin. Any SOFR Loan will bear interest at the daily simple SOFR rate plus the Applicable Margin. Borrowings under the credit facility may be used to refinance the replaced facility, for permitted acquisitions, and to provide for working capital and general corporate purposes.\n\n\n“M&T has been a long-term and reliable financing partner to help increase our borrowing power and access to capital, and we are very pleased to now have two additional top-tier lenders, Wells Fargo and Bank of America, take part in this credit facility,” said Tom Barbato, CFO of Transcat. “This facility has been used to repay our existing credit facility with M&T, and along with our existing free cash flow, is intended to help meet our anticipated capital resources needs to fund future strategic acquisitions and support other internal initiatives, all focused on meeting the demands of our aggressive growth trajectory for the foreseeable future.\n\n\n“The level of interest from the various banks was a testament to Transcat’s long-term, proven track record of gr...