Montrose Environmental Group Reduces Debt and Simplifies Balance Sheet

Montrose Environmental Group, a leading provider of environmental consulting and remediation services, has made significant strides in its efforts to enhance environmental stewardship and economic development. The company has successfully redeemed all remaining issued and outstanding shares of its Series A-2 Preferred Stock, a move that simplifies its balance sheet and reduces debt. This achievement is a testament to Montrose's strong operating performance and its commitment to maximizing shareholder returns while staying true to its strategy.

Key Takeaways:

• Montrose Environmental Group fully redeemed all remaining issued and outstanding shares of Series A-2 Preferred Stock on July 1, 2025, using cash on hand and borrowings under its 2025 Credit Facility.
• The redemption eliminated $62.2 million in outstanding stated value of Series A-2 Preferred Stock and $1.4 million in accrued and unpaid dividends.
• The move simplifies Montrose's balance sheet and reduces debt, allowing the company to focus on investments in organic and inorganic growth.
• Vijay Manthripragada, President and Chief Executive Officer of Montrose, stated that the company's continued strength and confidence in its outlook enabled the voluntary redemption of the preferred equity instrument ahead of Oaktree Capital's next conversion date.
• The redemption was completed almost a year ahead of the original expectations and will enable Montrose to further invest in its business, drive strategic growth, and increase long-term value for its shareholders.
• The company appreciates Oaktree's support and confidence in its management team and strategy.
• The redemption marks a significant milestone in Montrose's efforts to enhance environmental stewardship and economic development.

Statistics:

• $62.2 million: the outstanding stated value of Series A-2 Preferred Stock redeemed by Montrose.
• $1.4 million: the accrued and unpaid dividends paid by Montrose on the redeemed Series A-2 Preferred Stock.
• $2025: the year in which Montrose redeemed the Series A-2 Preferred Stock.
• July 1, 2025: the date on which Montrose fully redeemed all remaining issued and outstanding shares of Series A-2 Preferred Stock.
• November 2024: the month in which Montrose conveyed strong confidence in its outlook and desire to simplify its balance sheet.

Sources:

• Montrose Environmental Group, Inc. news release, July 2025.