Ethan Kalis's questions to MATTHEWS INTERNATIONAL (MATW) leadership • Q1 2025
Question
Ethan Kalis focused on the capital structure, asking which debt would be repaid with the SGK sale proceeds, the strategy around the bond's first call option, and the company's post-transaction leverage target.
Answer
CFO Steven Nicola explained that proceeds would substantially be applied to the revolver debt initially. He noted the company intentionally structured its bonds with a short-term, 1-year no-call feature (expiring in September) and will evaluate refinancing then. CEO Joseph Bartolacci added this was intentional given the pending SGK deal. Nicola reiterated the long-term leverage target is 3.0x or less, which this transaction helps achieve.