Montrose Environmental Group, Inc. (the “Company,” “Montrose” or “MEG”) (NYSE: MEG), is on a mission to help protect the air we breathe, the water we drink, and the soil that feeds us, and aims to enhance environmental stewardship and economic development. Montrose today announced that on July 1, 2025, the Company fully redeemed all remaining issued and outstanding shares of Series A-2 Preferred Stock held by an affiliate of Oaktree Capital (“Oaktree”).
The Company used cash on hand and borrowings under its 2025 Credit Facility to redeem the outstanding stated value of Series A-2 Preferred Stock of $62.2 million and to pay $1.4 million of accrued and unpaid dividends thereon through the redemption date.
Following this redemption, no shares of the A-2 Preferred stock remain outstanding and Oaktree no longer has the right to appoint a member to the Company’s Board of Directors.
“The continued strength of Montrose’s operating performance gave us the ability to voluntarily redeem this preferred equity instrument in order to minimize dilution to our stockholders almost a year ahead of Oaktree’s next conversion date, while maintaining our flexibility to continue investments in organic and inorganic growth. In November 2024, we conveyed strong confidence in our outlook, our desire to further simplify our balance sheet, and our intent to continue maximizing shareholder returns without deviating from our strategy. Today, we simplified our balance sheet ahead of original expectations, and we remain very confident in our outlook,” said Vijay Manthripragada, President and Chief Executive Officer of Montrose. “We appreciate all of Oaktree’s support over the years, and we are grateful for their confidence in our management team and our strategy. With this redemption now complete, we are well-positioned to further invest in our business, drive strategic growth, and increase long-term value for our stockholders.”
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