Arizona Tribune - HEICO Corporation Increases Credit Facility to $2.2 Billion

HEICO's record-size Facility includes an accordion feature allowing it to be increased to $3 billion under certain circumstances. Borrowings under the Facility bear interest at the Secured Overnight Financing Rate ("SOFR") plus an applicable margin ranging from 75 to 125 basis points, which is indexed to HEICO's investment grade rating.

Proceeds from the Facility will be used primarily to fund acquisitions, as well as for general business purposes. Since 1996, HEICO has completed over 110 acquisitions and remains committed to its disciplined acquisition strategy.

Eric A. Mendelson and Victor H. Mendelson, HEICO's Co-Chairmen and Co-Chief Executive Officers, stated, "Expanding the credit facility to $2.2 billion gives us meaningful runway to keep doing what we do best: finding great businesses and welcoming them into the HEICO family. Our lenders have been with us through many of those acquisitions, and their continued support and partnership provides financial flexibility to efficiently respond to market opportunities and grow the business."

Carlos L. Macau, Jr., HEICO's Executive Vice President and Chief Financial Officer, added, "Extending the maturity to 2031 at attractive pricing reflects the strength of HEICO's balance sheet and cash flow. This is exactly the kind of low-cost, flexible capital that funds accretive growth while keeping our leverage conservative and our discipline intact."

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 https://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. Factors that could cause such differences include, among others: the severity, magnitude and duration of public health threats; our liquidity and the amount and timing of cash generation; lower commercial air travel, 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 in 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 and manufacturing costs and delay sales; cybersecurity events or other disruptions of our information technology systems could adversely affect our business; and our ability to make acquisitions, including obtaining any applicable domestic and/or foreign governmental approvals, and achieve operating synergies from acquired businesses; customer credit risk; interest, foreign currency exchange and income tax rates; and economic conditions, including the effects of inflation, within and outside of the aviation, defense, space, medical, telecommunications and electronics industries, which could negatively impact our costs and revenues. 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.

Contact:
Victor H. Mendelson (305) 374-1745
Carlos L. Macau, Jr. (954) 744-7570

SOURCE: HEICO Corporation

View the original press release on ACCESS Newswire

R.Garcia--AT