HEICO Corporation Announces Record $1.3 Billion Credit Facility
November 07 2017 - 8:31AM
Business Wire
New Facility Increases HEICO’s Borrowing
Capacity by 30%
HEICO Corporation (NYSE: HEI.A and HEI) announced today that it
entered into a new $1.3 billion unsecured revolving credit facility
(the “Facility”) with a banking syndicate led by SunTrust Bank,
Bank of America and Wells Fargo Bank. Other banks participating are
BB&T Bank, Capital One, Fifth Third Bank, J.P. Morgan, PNC
Bank, TD Bank, and U.S. Bank as co-documentation agents, as well as
Citibank, BankUnited, Synovus Bank and IberiaBank.
The Facility, which is a record size for HEICO, may be increased
to $1.65 billion under certain circumstances and replaces the
Company’s $1.0 billion revolving credit facility, which was itself
expanded from $800 million in April 2017. The new Facility’s
capacity increased 30% over the $1.0 billion pre-existing revolving
credit facility and 62.5% over the previous $800 million limit.
Borrowings under the Facility bear interest at LIBOR plus the
applicable margin ranging from 100 basis points to 200 basis
points, based on certain leverage measurements. The Facility
matures in November 2022 and can be extended for two additional
one-year periods. In addition, HEICO’s Facility provides increased
flexibility on non-financial provisions.
HEICO’s Facility, which is available for general corporate
purposes, will principally be used to fund acquisitions. Since
1996, HEICO has completed 65 acquisitions and remains committed to
a disciplined and active capital allocation strategy. In the last
twelve months, HEICO completed four acquisitions, including
AeroAntenna Technology, Inc., its largest ever.
Laurans A. Mendelson, HEICO's Chairman & Chief Executive
Officer, along with Co-Presidents, Eric A. Mendelson and Victor H.
Mendelson remarked, “HEICO’s excellent performance and credit
profile enabled us to significantly expand our credit facility
twice in the past six months. This increased financial firepower,
along with the Facility’s longer duration, should allow us to
continue making acquisitions and execute our strategic goals for
many years.”
Carlos L. Macau Jr., HEICO’s Executive Vice President &
Chief Financial Officer, added, “We are proud to have earned such
strong support and confidence from our banks. We look forward to
maintaining our great relationships and 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) receives 1/10 vote per share and the
Common Stock (HEI) receives 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.
Certain statements in this press release constitute
forward-looking statements, which are subject to risks,
uncertainties and contingencies. HEICO's actual results may differ
materially from those expressed in or implied by those
forward-looking statements as a result of factors including: lower
demand for commercial air travel or airline fleet changes or
airline purchasing decisions, which could cause lower demand for
our goods and services; product specification costs and
requirements, which could cause an increase to our costs to
complete contracts; governmental and regulatory demands, export
policies and restrictions, reductions in defense, space or homeland
security spending by U.S. and/or foreign customers or competition
from existing and new competitors, which could reduce our sales;
our ability to introduce new products and services at profitable
pricing levels, which could reduce our sales or sales growth;
product development or manufacturing difficulties, which could
increase our product development costs and delay sales; our ability
to make acquisitions and achieve operating synergies from acquired
businesses; customer credit risk; interest, foreign currency
exchange and income tax rates; economic conditions within and
outside of the aviation, defense, space, medical,
telecommunications and electronics industries, which could
negatively impact our costs and revenues; and defense budget cuts,
which could reduce our defense-related revenue. Parties receiving
this material are encouraged to review all of HEICO's filings with
the Securities and Exchange Commission, including, but not limited
to filings on Form 10-K, Form 10-Q and Form 8-K. We undertake no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise, except to the extent required by applicable law.
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version on businesswire.com: http://www.businesswire.com/news/home/20171107005978/en/
HEICO CorporationVictor H. Mendelson, 305-374-1745orCarlos L.
Macau, Jr., 954-987-4000
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