Company: MRCY
Filing Date: 2025-11-04
Form Type: 8-K
Source: 0001049521-25-000060
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Company: MERCURY SYSTEMS INC
Filing Date: 2025-11-04
Form: 8-K
Item: Item 1.01
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Item 1.01 Entry Into a Material Definitive Agreement

On November 4, 2025, Mercury Systems, Inc. (the “ Company”), as the borrower, and Mercury Mission Systems, LLC, as a guarantor, entered into Amendment No. 7 (“ Amendment No. 7”) to the Company’s Credit Agreement dated May 2, 2016 (the Credit Agreement, as amended, supplemented, waived, or modified from time to time through and including Amendment No. 6, the “ Existing Credit Agreement”, and as amended by Amendment No. 7, the “ Amended Credit Agreement”) with a syndicate of commercial banks and Wells Fargo Bank, National Association, acting on and after Amendment No. 7 as the successor administrative agent to Bank of America, N. A. Amendment No. 7 provides for (1) a new five-year revolving credit facility maturing on November 4, 2030 with $850.0 million in commitments; (2) the paydown of extensions of credit, and termination of commitments, under the Company’s existing $900.0 million revolving credit facility; (3) an increase in the amount of unrestricted cash netted from calculations of the consolidated total net leverage ratio from $150.0 million to $225.0 million (also applicable to the new springing senior secured net leverage ratio test described below); (4) an update to the definition of consolidated EBITDA related to certain non-cash charges; (5) the addition to the financial covenants of a springing quarterly maximum senior secured net leverage ratio test triggered upon the issuance of at least $350.0 million of convertible or senior unsecured debt (the “ New Financial Covenant Trigger”); and (6) the removal of credit spread adjustments in interest rate calculations. The Company had $591.5 million in outstanding borrowings both prior to and following the closing of Amendment No. 7. Below is a summary of the Amended Credit Agreement.

Borrowing Capacity

The new revolving credit facility under the Amended Credit Agreement has a borrowing capacity of $850.0 million. The existing revolving credit facility under the Existing Credit Agreement was refinanced and commitments thereunder terminated on November 4, 2025 in connection with entry into the new revolving credit facility.

Maturity

The new revolving credit facility under the Amended Credit Agreement will mature on November 4, 2030.

Interest Rates and Fees

Borrowings applicable to the new revolving credit facility under the