MGP Ingredients amends credit deal to add back up to $20 million in customer losses
MGP Ingredients, Inc. signed Amendment No. 2 to its credit agreement with Wells Fargo Bank on August 6, 2026, and an Eighth Amendment to its PGIM note purchase agreement. The amendments let the company exclude up to $20,000,000 of losses on specific customer receivables from covenant calculations through December 31, 2027, and the company has elected a higher leverage ceiling tied to the Penelope Bourbon earnout. The filing names MGP Ingredients rather than Sempreon, Inc., so shareholders should confirm the ticker and company before relying on it.
Key points
- Amendment No. 2 is dated August 6, 2026, and lets the company add back up to $20,000,000 in aggregate losses on certain customer receivables through December 31, 2027.
- Covenants remain a fixed charge coverage ratio of at least 1.25 to 1.00 and a net leverage ratio of no greater than 4.00 to 1.00, which rises to 4.50 to 1.00 during an Elevated Ratio Period.
- The company has elected an Elevated Ratio Period starting with the quarter ended June 30, 2026, for three quarters after that, linked to the Penelope Bourbon LLC earnout.
- The company says it expects the third fiscal quarter of 2026 to be its peak leverage point, and describes the amendments as precautionary.
The filing
Written by AI on Nov 9, 2026, 8:29 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on August 07, 2026.
Briefs are written by AI from the filing text and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the AI's reading of the filing for shareholders, not a price forecast. Not investment advice.