Matthews International Corporation announced that it will redeem all of its outstanding 8.625% senior secured second‑lien notes due 2027, totaling $300 million in principal. The company will pay a redemption price of 104.313% of the principal amount, plus accrued and unpaid interest, on January 22, 2026.
The redemption removes a high‑interest debt instrument that carries an 8.625% coupon, allowing Matthews to lower its overall interest expense and improve its net leverage ratio. Management has set a long‑term target of 2.5× net leverage and has been steadily reducing its debt load, with a recent warehouse‑automation transaction expected to bring the ratio below 3.0×.
Matthews’ Q4 2025 earnings showed mixed segment performance: the Memorialization segment delivered stronger sales and adjusted EBITDA, while the Industrial Technologies segment faced headwinds from litigation with Tesla and lower demand for legacy products. The debt‑reduction move is part of a broader strategy to shift the company’s balance sheet toward lower‑cost financing and to free capital for future growth initiatives.
Joseph C. Bartolacci, president and CEO, said the redemption “strengthens our capital structure and supports our long‑term goal of a lower leverage profile, giving us greater flexibility to invest in high‑return opportunities.” The company’s dividend history and recent equity contributions from the SGK divestiture further underscore its focus on deleveraging.
Analysts have noted the redemption as a positive step toward improving Matthews’ financial flexibility, even as they remain cautious about the company’s mixed operating results and high leverage. The move is expected to reduce annual interest expense by roughly $25 million and to improve the company’s debt‑to‑EBITDA ratio, reinforcing management’s commitment to a leaner balance sheet.
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