HEICO Corporation (NYSE:HEI) (NYSE:HEI.A) announced today that it amended and extended its existing credit facility to a $1.5 billion unsecured revolving credit facility (the “Facility”). Additionally, the Facility’s maturity date has been extended by one year to November 2023 and it can be extended for an additional one-year period. The Facility is with a banking syndicate led by Truist Bank, Bank of America and Wells Fargo Bank. Co-Syndication Agents are PNC Bank and TD Bank, and other banks participating are Capital One, Fifth Third Bank, J.P. Morgan Chase Bank, and U.S. Bank as co-documentation agents, as well as Citibank, Synovous Bank, IberiaBank, and BankUnited.
The Facility, which is a record size for HEICO, may be increased to $1.85 billion under certain circumstances and amends the Company’s existing $1.3 billion revolving credit facility. Borrowings under the amended Facility bear interest at LIBOR plus the applicable margin ranging from 100 basis points to 200 basis points, based on certain leverage measurements.
HEICO’s Facility, which is available for general corporate purposes, will principally be used to fund acquisitions. Since 1996, HEICO has completed 81 acquisitions and remains committed to a disciplined and active capital allocation strategy. In the last twelve months, HEICO completed six acquisitions, despite the challenges of the COVID-19 global pandemic (the “Pandemic”).
Laurans A. Mendelson, HEICO's Chairman & Chief Executive Officer, along with Co-Presidents, Eric A. Mendelson and Victor H. Mendelson remarked, “Despite the Pandemic’s complications, HEICO’s solid financial performance and strong credit profile enabled us to significantly expand our existing credit facility and extend the maturity by an additional year. The increased financial commitments, along with the Facility’s longer duration, will help us to continue making acquisitions and execute our strategic goals, while maintaining a low cost of capital.”
Carlos L. Macau Jr., HEICO’s Executive Vice President & Chief Financial Officer, added, “We continue to maintain a strong balance sheet with a laser focus on cash generation. The additional capacity in our credit facility will permit us to pursue cash generating acquisitions while maintaining a highly flexible capital structure. We appreciate the support and confidence of our bank group and look forward to continuing to work together in the future.”
The Company has two classes of common stock traded on the NYSE. Both classes, the Class A Common Stock (HEI.A) and the Common Stock (HEI), are virtually identical in all economic respects. The only difference between the share classes is the voting rights. The Class A Common Stock (HEI.A) carries 1/10 vote per share and the Common Stock (HEI) carries one vote per share. The stock symbols for HEICO's two classes of common stock on most web sites are HEI.A and HEI. However, some web sites change HEICO's Class A Common Stock symbol (HEI.A) to HEI/A, HEIa or HEI-A.
HEICO Corporation is engaged primarily in the design, production, servicing and distribution of products and services to certain niche segments of the aviation, defense, space, medical, telecommunications and electronics industries through its Hollywood, Florida-based Flight Support Group and its Miami, Florida-based Electronic Technologies Group. HEICO’s customers include a majority of the world’s airlines and overhaul shops, as well as numerous defense and space contractors and military agencies worldwide, in addition to medical, telecommunications and electronics equipment manufacturers. For more information about HEICO, please visit our website at http://www.heico.com.