Transcat, a leader in test, measurement, and calibration, has secured a new five-year, $150 million credit facility led by Manufacturers and Traders Trust Company (M&T), with contributions from Wells Fargo Bank and Bank of America. This replaces the previous $80 million facility.
The new facility features a $150 million revolving credit line, offering options for revolving loans, swingline loans, and letters of credit. It allows for a temporary increase in the leverage ratio covenant for significant acquisitions. Interest on loans is calculated based on applicable rates plus a margin. Funds can be used for refinancing, permitted acquisitions, and general corporate purposes.
Support: M&T and Wells Fargo are joint lead arrangers and joint bookrunners.
KEY QUOTES:
“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. 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.”
“The level of interest from the various banks was a testament to Transcat’s long-term, proven track record of growth and enhanced profitability. The terms and options of the new facility provide greater financial flexibility to invest in internal initiatives and support our next phase of planned business acquisitions. This marks another important milestone for our company as we continue to deliver on our strategic growth objectives and strive to create sustainable, long-term value for our shareholders. We appreciate the strong support and confidence provided by M&T, Wells Fargo, and Bank of America.”
Tom Barbato, CFO of Transcat
“M&T Bank is proud to support Transcat as they pursue accelerated growth, expand their reach and continue to meet urgent industry needs for mission-critical, accredited calibration services and equipment. We are honored to serve as a trusted partner and contribute to this next chapter of Transcat’s journey.”
Steve Epping, M&T Bank Rochester Regional President and Executive Vice President for Commercial Banking
