METHODE ELECTRONICS INC — Form 10-Q
Filed September 2, 2026 · analyzed by the Periodic Agent
10-Q
▼ Likely negative
significance 58/100
What the filing says
On August 31, 2026, Methode Electronics amended its credit agreement with Bank of America (agent) and nine other lenders, reducing aggregate revolving commitments from $400M to $375M ($25M immediate reduction). The facility splits into two tranches: 2027 Revolving Commitments (non-extended lenders, maturing Oct 31, 2027) and 2028 Extended Revolving Commitments (extended lenders, maturing Oct 29, 2028). An additional $75M reduction is triggered if the company receives >$50M in proceeds from asset dispositions. Interest rates rise to 3.50% (SOFR), 2.50% (base rate), and commitment fee of 0.40% through Q1 2027. Debt-to-EBITDA covenant tightens from 4.25x to 3.75x (Oct 2026) to 3.50x (Jan 2027) to 3.25x thereafter.
Why this rating
Credit facility cut 6.25% ($25M) relative to $237.7M market cap (~10.5% of cap value). Split maturity structure and higher rates signal refinance risk; tighter leverage covenants constrain operational flexibility. Moderate but material headwind.
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