Matthews International Corporation filed a current report on September 4, 2026, disclosing that on September 1, 2026, it entered into a Ninth Amendment to its Third Amended and Restated Loan and Security Agreement, modifying borrowing capacity, leverage ratio requirements, and the treatment of a joint venture interest.

Key Highlights

  • Amendment date: The Ninth Amendment to the Credit Agreement was executed on September 1, 2026.
  • Revolving capacity reduced: The aggregate principal amount available under the revolving credit facility was reduced to $650 million from $700 million.
  • Covenant Relief Period: A Covenant Relief Period runs from the closing date of the Ninth Amendment through December 31, 2027, unless earlier terminated by the Company.
  • Leverage Ratio steps: The required Leverage Ratio is 5.25 to 1.00 through June 30, 2027, stepping to 5.00 to 1.00 for Q3 2027 and 4.75 to 1.00 for Q4 2027.
  • Foreign borrower removed: Matthews Europe GmbH was released from the Credit Agreement, and the foreign borrower sublimit was reduced from $350 million to $0.00.
  • Joint venture exclusion: The Company's 40% interest in the Propelis Joint Venture is excluded from the Leverage Ratio calculation during the Covenant Relief Period.

Matthews International Restructures Credit Facility After Recent Divestitures

According to the filing, the general purpose of the Ninth Amendment is "to align the terms of the Credit Agreement with the structure of the Company after recent divestitures," which included adjustments to how the Leverage Ratio is calculated, a reduction in overall borrowing capacity, and the elimination of an unutilized foreign borrowing facility. Matthews International Corporation, a Pennsylvania-based company listed on the Nasdaq Global Select Market (NASDAQ:MATW), operates across multiple segments and uses its credit facility as a core financing tool for its ongoing operations.

The filing states that the Covenant Relief Period, which begins on the closing date of the Ninth Amendment and extends through December 31, 2027, has the effect of "excluding the Company's interest in the Propelis Joint Venture by increasing the amount of indebtedness the Company may carry in proportion to EBITDA." The Company agreed to maintain specific stepped Leverage Ratio limits at the end of each applicable quarter during this period. The filing further notes that if the Propelis Joint Venture is sold or otherwise disposed of, the then-applicable required Leverage Ratio will be reduced by 0.50.

In addition to the capacity reduction and covenant adjustments, the filing discloses that Matthews Europe GmbH was "released and discharged from the terms and conditions of the Credit Agreement and each applicable note issued thereunder and from any rights, obligations, or liabilities as a 'Foreign Borrower' under the Credit Agreement." As a result, the aggregate revolving credit available to foreign borrowers was reduced from $350 million to $0.00. The filing notes that all other material terms of the Credit Agreement remain unchanged and continue in full force and effect.

What Was Disclosed

Matthews International Corporation disclosed the execution of a Ninth Amendment to its existing Credit Agreement, covering changes to revolving credit capacity, leverage ratio covenants tied to a defined Covenant Relief Period, and the removal of Matthews Europe GmbH as a foreign borrower under the facility.