Matthews Intl. Restructures Debt with New Loan Agreement

TL;DR

**Matthews International just updated its loan agreement, watch for debt impact.**

AI Summary

Matthews International Corp. entered into a Third Amended and Restated Loan Agreement on January 31, 2024, which is a material definitive agreement and creates a direct financial obligation for the company. This new agreement replaces previous loan terms, indicating a restructuring of their debt. For investors, this matters because changes in loan agreements can impact a company's financial flexibility, interest expenses, and overall debt burden, potentially affecting profitability and stock valuation.

Why It Matters

This filing signals a change in Matthews International Corp.'s financial obligations, which could affect its cash flow and future investment capacity. Investors should understand the new terms to assess the company's financial health.

Risk Assessment

Risk Level: medium — While a new loan agreement isn't inherently bad, the specific terms (interest rates, covenants, maturity) could pose risks or benefits to the company's financial stability.

Analyst Insight

A smart investor would seek out the full text of the 'Third Amended and Restated Loan Agreement' to understand the new terms, interest rates, covenants, and maturity dates, as these details will impact the company's financial health and future profitability.

Key Numbers

• 2024-01-31 — Date of Earliest Event Reported (This is the effective date of the Third Amended and Restated Loan Agreement.)

Key Players & Entities

• MATTHEWS INTERNATIONAL CORP (company) — the registrant entering the loan agreement
• January 31, 2024 (date) — date of the earliest event reported and the loan agreement
• Pennsylvania (company) — state of incorporation for Matthews International Corp.
• 0-09115 (dollar_amount) — Commission File Number
• 25-0644320 (dollar_amount) — I.R.S. Employer Identification No.

Forward-Looking Statements

• Matthews International Corp.'s interest expenses will change due to the new loan agreement. (Matthews International Corp.) — medium confidence, target: 2024-09-30

FAQ

Key Financial Figures

• $1.00 — which registered Class A Common Stock, $1.00 par value MATW Nasdaq Global Select Mar
• $55 million — d to the Corporation was increased from $55 million to $75 million. In connection with the
• $75 million — ation was increased from $55 million to $75 million. In connection with the Fifth Amendment
• $750 million — d to, the aggregate principal amount of $750 million available under the Credit Facility rem

Filing Documents

• matw-20240131.htm (8-K) — 28KB
• fifthamendmenttothirdamend.htm (EX-10.1) — 1171KB
• 0000063296-24-000010.txt ( ) — 1509KB
• matw-20240131.xsd (EX-101.SCH) — 2KB
• matw-20240131_lab.xml (EX-101.LAB) — 24KB
• matw-20240131_pre.xml (EX-101.PRE) — 12KB
• matw-20240131_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On January 31, 2024, Matthews International Corporation (the "Corporation") entered into a Fifth Amendment (the "Fifth Amendment") to the Third Amended and Restated Loan and Security Agreement (as amended, the "Credit Agreement") by and among the Corporation and the banks party thereto (the "Credit Facility"). Among other things, pursuant to the Fifth Amendment, the maturity date of the Credit Facility is extended to January 2029, subject to standard provisions related to the resolution of the Corporation's senior unsecured notes or such earlier date on which the commitments under the Credit Facility have terminated pursuant to the Credit Agreement. Borrowings under the Credit Facility bear interest at the Secured Overnight Financing Rate, plus (a) an interest rate per annum equal to 0.10%, and (b) an interest rate of 1.0% to 2.0% based on the Corporation's Leverage Ratio (as defined in the Credit Facility). Pursuant to the Fifth Amendment, the limit on the letters of credit that may be issued to the Corporation was increased from $55 million to $75 million. In connection with the Fifth Amendment, TD Bank, N.A. became the joint lead arranger and joint book runner, along with Bank of America, N.A. under the Credit Facility. All other material terms of the Credit Agreement, including but not limited to, the aggregate principal amount of $750 million available under the Credit Facility remain unchanged and continue in full force and effect. The foregoing summaries of the Credit Agreement and the Fifth Amendment are not complete and are qualified in their entirety by reference to the full text of the Fifth Amendment, which is attached as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference. Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information set forth in items 1.01 above is incorporate

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits. Exhibit Number Description 10.1 Fifth Amendment to Third Amended and Restated Loan Agreement 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. MATTHEWS INTERNATIONAL CORPORATION (Registrant) By: /s/ Steven F. Nicola Steven F. Nicola Chief Financial Officer and Secretary Date: February 5, 2024

View Full Filing

View this 8-K filing on SEC EDGAR