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Mesa Laboratories Executes Previously-Announced Strategic Financing Plan

LAKEWOOD, Colo., Aug. 18, 2025 (GLOBE NEWSWIRE) -- Mesa Laboratories, Inc. (NASDAQ:MLAB) (we, us, our, "Mesa" or the "Company") today announced that it has executed on its previously-announced financial strategy, repaying $97.5 million aggregate principal of the Company's 1.375% Convertible Senior Notes due August 2025 (the "2025 Notes"). On August 12, 2025, the Company drew $97.0 million under its existing Amended and Restated Credit Agreement (the "Credit Agreement"), bringing the total outstanding balance to $108 million. The proceeds from the draw were used to settle the 2025 Notes that matured on August 15, 2025.

"This transaction reflects the disciplined execution of a plan we communicated in April, 2024," said John Sakys, Chief Financial Officer. "We've taken deliberate steps to optimize our capital structure using our Credit Facility, reducing potential dilution to our shareholders from the use of a hybrid debt instrument while supporting Mesa's long-term growth."The interest rate on the Credit Facility, currently 7.18%, will decrease in line with future Federal Funds Rate reductions, along with an additional 25 basis point reduction triggered when Mesa's net leverage ratio falls below 3.0x which we expect to happen no later than the third quarter of this fiscal year. We expect interest payments for the second quarter of fiscal year 2026 to be approximately $2.7 million, and we expect to make interest payments of $3.1 million or lower in each quarter thereafter, at current outstanding debt levels.

Under the definition in our Credit Agreement, total net leverage ratio is defined as the ratio of total debt minus unrestricted cash in excess of $10 million as compared to 12 months trailing EBITDA. EBITDA, a non-GAAP metric, for purposes of this calculation, is defined as net income plus the sum of interest expense, income tax expense, depreciation, amortization, unusual or non-recurring non-cash charges and stock compensation expense. Our total net leverage ratio was 3.16 as of June 30, 2025. Our strong cash flow profile is sufficient to service our outstanding debt. We made over $7 million in principal payments on our outstanding debt positions in the first quarter of fiscal year 2026 and we expect to make principal payments of approximately $20.0 million for quarters 2 through 4 of fiscal year 2026, with higher payments expected in fiscal year 2027.

The following table reflects the debt that is outstanding on our debt instruments following ...