Mayville Engineering Company, Inc. 8-K

What Happened

• Mayville Engineering Company, Inc. filed an 8-K to disclose a Third Amendment to its Amended and Restated Credit Agreement (originally dated June 28, 2023). The Third Amendment is dated February 25, 2026.
• The amendment reduces the total commitment size of the senior secured revolving credit facility by $75,000,000 (from $350,000,000 to $275,000,000), adds pricing tiers tied to higher leverage levels, adjusts permitted leverage and interest coverage ratios for specified periods, and tightens certain operational covenants (including restrictions on acquisitions) for fiscal 2026.

Key Details

• Revolver reduced by $75,000,000 to a new total commitment of $275,000,000 (effective under the Third Amendment).
• New permitted Consolidated Total Leverage Ratios by period:
  • Closing date through 12/31/2025: 4.00 to 1.00
  • 3/31/2026 and 6/30/2026: 5.25 to 1.00
  • 9/30/2026: 5.00 to 1.00
  • 12/31/2026: 4.00 to 1.00
  • 3/31/2027 and thereafter: 3.50 to 1.00
• Consolidated Interest Coverage Ratio minimums:
  • Closing date through 3/31/2026: 3.00 to 1.00
  • 6/30/2026 through 12/31/2026: 2.75 to 1.00
  • 3/31/2027 and thereafter: 3.00 to 1.00
• The amendment adds two additional pricing levels that apply when consolidated total leverage is ≥4.00:1.00 and ≥5.00:1.00, which can increase borrowing costs when leverage is high.
• The filing notes certain lender parties and their affiliates have provided (and may provide) banking and advisory services to the company for customary fees.

Why It Matters

• Liquidity and borrowing capacity: The revolver reduction lowers available credit by $75M, which could affect the company’s cash flexibility for operations, working capital, or acquisitions.
• Cost of borrowing: New pricing tiers tied to higher leverage mean borrowing could become more expensive if leverage increases, raising interest expense risk.
• Covenant and operational impact: Temporarily higher permitted leverage in some quarters but tighter covenants (including restrictions on acquisitions in FY2026) change how management can deploy capital and pursue deals.
• What investors should watch: trending leverage ratios, compliance with the amended covenants, revolver usage, interest expense, and any disclosures about liquidity or covenant waivers in future filings.