Matthews International Enters Ninth Credit Amendment; Revolver Cut to $650M

What Happened

• Matthews International Corporation (MATW) announced on September 1, 2026 that it entered into a Ninth Amendment to its Third Amended and Restated Loan and Security Agreement (the Credit Agreement). The amendment aligns the credit facility with the company’s post-divestiture structure by excluding its 40% interest in the Propelis Joint Venture from the Leverage Ratio calculation during a defined “Covenant Relief Period,” reducing borrowing capacity, and eliminating an unused foreign borrowing facility.

Key Details

• Covenant Relief Period: effective at the Ninth Amendment closing date through December 31, 2027 (unless earlier terminated).
• Leverage Ratio limits during the Covenant Relief Period: 5.25:1 for quarters ending 9/30/26, 12/31/26, 3/31/27 and 6/30/27; 5.00:1 for 9/30/27; 4.75:1 for 12/31/27. After the period ends, Leverage Ratio required is 4.50:1 (and would be reduced by 0.50 if the Propelis JV is sold).
• Revolving credit capacity reduced to $650 million from $700 million.
• Matthews Europe GmbH was released as a “Foreign Borrower” and the aggregate availability for Foreign Borrowers was reduced to $0 (from $350 million).

Why It Matters

• The amendment gives Matthews temporary covenant relief tied to excluding its Propelis JV interest from leverage calculations, providing measurable additional leverage capacity through December 31, 2027.
• At the same time, the company’s available revolving credit is reduced by $50 million and its foreign borrowing capacity has been eliminated, which materially changes its borrowing flexibility and international funding options.
• Investors should note these are contractual changes to the company’s credit terms—not operating results—and they affect liquidity and covenant thresholds that could influence financing flexibility going forward.