DMC GLOBAL AMENDS CREDIT FACILITY TO ENHANCE FINANCIAL FLEXIBILITY (Form 8-K)

DMC GLOBAL AMENDS CREDIT FACILITY TO ENHANCE FINANCIAL FLEXIBILITY

BROOMFIELD, Colo. - June 11, 2025 - DMC Global Inc. (Nasdaq: BOOM) today announced it has amended its existing credit facility to enhance financial flexibility. The amendment comes as the Company prepares for the possible exercise of a put/call option related to the 40% ownership interest in Arcadia Products, LLC ("Arcadia") not presently owned by DMC. DMC currently holds a 60% controlling interest in Arcadia, with the remaining 40% owned by a joint venture partner.

Under Arcadia's governing agreement, DMC's joint venture partner may exercise the put option beginning September 6, 2026, while DMC retains the right to exercise the call option at any time. The amended credit agreement is designed to support a possible cash acquisition of the remaining Arcadia stake under either scenario. The Company believes this enhanced flexibility is prudent and cost efficient given recent economic volatility and more challenging visibility at present.

Key provisions of the amendment to DMC's credit facility include a temporary increase in DMC's maximum leverage ratio to 3.5x adjusted EBITDA over the trailing 12 months - up from 3.0x - should either the put or call option be exercised. This elevated leverage limit will apply for the first two quarters following payment of the purchase price of the put or call option, followed by a reduction to 3.25x in the third quarter, and a return to 3.0x thereafter. Additionally, proceeds under the existing $50 million delayed draw term loan facility set to expire on February 6, 2026, may now be held (to the extent drawn on such facility prior to expiration) in a restricted account after the expiration of such facility for purposes of paying the purchase price of the put or call option in the future.

"We appreciate the continued support and confidence of our banking group," said Eric Walter, DMC's chief financial officer. "We believe this amendment to our credit facility enhances our financial flexibility and strengthens our ability to complete the acquisition of the remaining interest in Arcadia."