MATERION CorpMTRN

MATERION Corp Debt Disclosure

10-KFiled Feb 12, 20262 min read
Debt
Long-term debt in the Consolidated Balance Sheets is summarized as follows:
 December 31,
(Thousands)20252024
Borrowings under Credit Agreement with average interest rate of 5.26% at December 31, 2025 and 6.27% at December 31, 2024
$221,125 $198,875 
Borrowings under the Term Loan Facility222,188 240,000 
Overdraft Sweep Facility15,659 123 
Foreign debt1,670 4,901 
Total long-term debt outstanding460,642 443,899 
Current portion of long-term debt(22,445)(34,274)
Gross long-term debt$438,197 $409,625 
Unamortized deferred financing fees(1,849)(1,891)
Long-term debt$436,348 $407,734 
Maturities on long-term debt instruments as of December 31, 2025 are as follows:
(Thousands)
202622,445 
20278,664 
202811,476 
202911,307 
2030406,750 
2031 and thereafter — 
Total$460,642 


In June 2025, the Company entered into a Fifth Amended and Restated Credit Agreement (Credit Agreement). The Credit Agreement refinanced the revolving credit facility and term loan facility provided under Materion's previous Fourth Amended and Restated Credit Agreement, dated October 27, 2021 (as amended). Among other things, the Credit Agreement provides for a $450 million senior secured revolving credit facility (Revolving Credit Facility) and a $225 million senior secured term loan facility (Term Loan Facility and, together with the Revolving Credit Facility, Credit Facilities). The Term Loan Facility was fully drawn on June 26, 2025. The Credit Facilities mature on June 26, 2030.
The Credit Agreement provides the Company and its subsidiaries with additional capacity to enter into facilities for the consignment of precious metals and copper, and provides enhanced flexibility to finance acquisitions and other strategic initiatives. Borrowings under the Credit Agreement are secured by substantially all of the assets of the Company and its direct subsidiaries, with the exception of non-mining real property, precious metals, copper and certain other assets.
The Credit Agreement allows the Company to borrow money at a premium over SOFR, following the January 2023 amendment, or prime rate and at varying maturities. The premium resets quarterly according to the terms and conditions available under the agreement. The Credit Agreement includes restrictive covenants relating to restrictions on additional indebtedness, acquisitions, dividends, and stock repurchases. In addition, the Credit Agreement includes covenants subject to a maximum leverage ratio and a minimum interest coverage ratio. We were in compliance with all of our debt covenants as of December 31, 2025 and December 31, 2024. Cash on hand up to $35 million can benefit the covenants and may benefit the borrowing capacity under the Credit Agreement. At December 31, 2025 and 2024, there was $443.3 million and $438.9 million outstanding under the Credit Agreement, respectively.
At December 31, 2025 and December 31, 2024, there was $5.2 million and $7.1 million letters of credit outstanding against the credit sub-facility, respectively. The Company pays a variable commitment fee that may reset quarterly (0.200% as of December 31, 2025) on the available and unborrowed amounts under the revolving credit line.
The available borrowings under the individual existing credit lines totaled $223.7 million as of December 31, 2025.

Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 19, 2025
2023Feb 15, 2024
2022Feb 16, 2023
2021Feb 17, 2022
2020Feb 18, 2021
2019Feb 13, 2020
2018Feb 14, 2019
2017Feb 15, 2018
2016Feb 17, 2017
2015Feb 25, 2016

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.

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