Mesa Laboratories entered into a five-year agreement for an $80 million revolving line of credit, a $20 million term loan and up to $2.5 million in letters of credit with a banking syndicate comprised of JPMorgan Chase Bank, Bank of The West, Fifth Third Bank and Wells Fargo Bank.

In addition, the credit facility provides a post-closing accordion feature which allows for the company to request to increase the line of credit or term loan by up to an additional $100 million.

Funds from the credit facility may be used to pay down its previous credit facility, finance working capital needs and for general corporate purposes in the ordinary course of business.

Line of credit and term loan indebtedness bears interest at either LIBOR plus an applicable margin ranging from 1.5% to 2.50%, or the alternate base rate, which is the greater of JPMorgan’s prime rate, the federal funds effective rate or the overnight bank funding rate plus 0.5%. Letter of credit fees are based on the applicable LIBOR rate.

The credit facility is secured by all of the company’s assets.

In connection with entering into the facility, Mesa repaid in full all obligations and liabilities owed under a now-terminated $70 million credit facility with JPMorgan.