Mesa Laboratories Inc. has executed its financial strategy by repaying $97.5 million of its Convertible Senior Notes that were due on Aug. 15, 2025. To fund this repayment, the company drew $97 million under its existing Credit Agreement, bringing its total outstanding balance to $108 million.
The proceeds from this drawdown were utilized to settle the matured Convertible Senior Notes. “This transaction reflects the disciplined execution of a plan we communicated in April, 2024,” said John Sakys, chief financial officer. He added that these steps help to optimize the company’s capital structure and reduce potential shareholder dilution.
Lakewood-based Mesa’s current Credit Facility interest rate stands at 7.18%, which is expected to decrease alongside future Federal Funds Rate reductions. The company anticipates interest payments of approximately $2.7 million for the second quarter of fiscal year 2026, with lower payments in subsequent quarters.
Mesa has reported a solid cash flow profile that supports its ability to manage outstanding debt. In the first quarter of fiscal year 2026, the company made over $7 million in principal payments and plans to pay approximately $20 million in principal over the remaining three quarters of the fiscal year.
Mesa is a global provider of life science tools and quality control solutions that support product integrity, safety and quality of life in the pharmaceutical, healthcare and medical device industries.
