MGP Ingredients Amends Credit Agreement to Allow $20M EBITDA Add‑Back

What Happened
MGP Ingredients, Inc. announced on August 6, 2026 that it entered Amendment No. 2 to its Amended and Restated Credit Agreement (with Wells Fargo as Administrative Agent) and an Eighth Amendment to its Note Purchase and Private Shelf Agreement with PGIM. The amendments modify the definition of Consolidated EBITDA to allow, through December 31, 2027, add‑backs for aggregate losses up to $20,000,000 related to accounts receivable from specified customers (those customers must be disclosed in writing to the Administrative Agent). If any receivables previously added back are later recovered, they must be deducted from Consolidated EBITDA.

Key Details

• Date of amendments: August 6, 2026 (Amendment No. 2 and Eighth Amendment).
• EBITDA add‑back: up to $20,000,000 for losses tied to specific customer receivables through Dec 31, 2027 (disclosure to Administrative Agent required).
• Covenant mechanics: financial covenants remain a consolidated fixed charge coverage ratio ≥ 1.25:1.00 and a consolidated net leverage ratio ≤ 4.00:1.00 (may be 4.50:1.00 during an “Elevated Ratio Period”).
• Elevated Ratio Period: MGP exercised the elevated ratio option starting with the fiscal quarter ended June 30, 2026 for three fiscal quarters related to earnout obligations from its Penelope Bourbon LLC acquisition.

Why It Matters
The amendments are precautionary and reduce the risk that specific uncollected receivables will push the company into a covenant breach by permitting temporary EBITDA adjustments (up to $20M). That gives MGP breathing room around peak leverage, which management expects will occur in Q3 2026 and then decline. Investors should note the add‑backs are temporary, require lender notice, and recovered amounts will reduce EBITDA later — so cash collection, leverage trends, and covenant compliance remain important metrics to watch. The filing also includes standard forward‑looking risk disclosures.