I'm LongbridgeAI, I can summarize articles.MGP Ingredients amended its credit and note agreements to permit a $20 million EBITDA add-back for specified customer receivable losses through December 31, 2027. This adjustment aligns covenant definitions across lenders and provides precautionary flexibility as management anticipates leverage peaking in Q3 2026. Existing covenants, including a 4.0x net leverage cap, remain unchanged.
MGP Ingredients amended its primary financing agreements to allow up to $20 million of specified customer receivable losses to be added back to Consolidated EBITDA through December 31, 2027, with any recoveries deducted later. The company signed Amendment No. 2 to its Amended and Restated Credit Agreement and an Eighth Amendment to its Note Purchase and Private Shelf Agreement, aligning covenant definitions across lenders and noteholders. The updates are intended to provide precautionary covenant flexibility as management expects leverage to peak in Q3 2026 and then decline. Existing covenants, including a 1.25x fixed charge coverage minimum and a net leverage cap of 4.0x (4.5x during an Elevated Ratio Period the company has elected), remain in place.
Agreement 1: MGP Ingredients Secures Covenant Relief With Credit Agreement Amendment Through 2027
- Agreement type: Amendment No. 2 to Amended and Restated Credit Agreement
- Counterparty: Wells Fargo Bank, as Administrative Agent, and other lenders
- Signed / Effective: Aug 06 2026 / Aug 06 2026
- Reason: Provide covenant flexibility during elevated leverage period
Agreement 2: MGP Ingredients Aligns Note Purchase Terms With EBITDA Add-Back Via PGIM Amendment
- Agreement type: Eighth Amendment to Note Purchase and Private Shelf Agreement
- Counterparty: PGIM and affiliated noteholders
- Signed / Effective: Aug 06 2026 / Aug 06 2026
- Reason: Align note terms with amended credit facility and bolster flexibility
Original SEC Filing: MGP INGREDIENTS INC [ MGPI ] - 8-K - Aug. 07, 2026