Street Calls of the Week
ROCHESTER, N.Y. - Transcat, Inc. (NASDAQ:TRNS), a provider of test measurement, control and calibration services with a market capitalization of $747 million, announced Tuesday it has closed a new five-year $150 million secured credit facility, nearly doubling its previous $80 million arrangement. According to InvestingPro data, the company maintains strong financial health with liquid assets exceeding short-term obligations.
The new facility was arranged through a banking syndicate led by Manufacturers and Traders Trust Company (M&T), with Wells Fargo Bank and Bank of America joining as additional lenders.
The expanded credit facility replaces Transcat’s previous $80 million arrangement with M&T and includes provisions for temporary increases to leverage ratio covenants when making significant acquisitions.
"This facility has been used to repay our existing credit facility with M&T, and along with our existing free cash flow, is intended to help meet our anticipated capital resources needs to fund future strategic acquisitions," said Tom Barbato, CFO of Transcat.
The new arrangement provides borrowing options including revolving loans, swingline loans, and letters of credit. Funds may be used for permitted acquisitions, working capital, and general corporate purposes.
Transcat operates 33 calibration service centers across the United States, Puerto Rico, Canada, and Ireland, providing services primarily to life science companies, including pharmaceutical, biotechnology, and medical device businesses. The company has demonstrated solid performance with revenue of $278 million and 7.3% year-over-year growth. Get access to Transcat’s comprehensive Pro Research Report and detailed financial analysis through InvestingPro.
M&T and Wells Fargo served as joint lead arrangers and joint bookrunners for the transaction.
The announcement was made in a company press release statement.
In other recent news, Transcat Inc. reported its fiscal Q4 2025 earnings, exceeding analyst expectations with an earnings per share (EPS) of $0.68, surpassing the forecasted $0.65. The company’s revenue also outperformed projections, reaching $77.13 million against a forecast of $76.67 million. This revenue growth was driven by high single-digit organic growth within the service segment and contributions from recent mergers and acquisitions, including the acquisition of Martin Calibration. H.C. Wainwright raised Transcat’s price target to $116, maintaining a Buy rating, citing the company’s return to more normalized organic growth. Craig-Hallum also increased the price target to $105, highlighting strong margins and overall profitability, particularly within the Service Segment. Lake Street Capital Markets initiated coverage with a Buy rating and a price target of $105, seeing Transcat as an attractive investment in the calibration and test & measurement market. Northland maintained a Market Perform rating with an $85 target, noting effective expense management contributing to better-than-expected bottom-line results. These developments reflect a positive outlook from analysts and highlight Transcat’s strategic direction and financial health.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.