HEICO announced it increased its $670 million revolving credit facility to an aggregate future capacity of $1 billion and that it extended the facility by a year until December 2018. SunTrust Bank, Bank of America and Wells Fargo Bank are lead managers for the facility, which is being utilized for acquisitions and other corporate needs.
Other participating banks are: Branch Banking and Trust Company, PNC Bank, US Bank, RBS Citizens, Fifth Third Bank, JP Morgan Chase Bank, Synovus Bank, The Northern Trust Company, Mercantil Commercebank and Florida Community Bank.
Under the amendment, $800 million of the facility is fully committed for funding and an additional $200 million has been committed subject to future consent of the lenders.
Originally entered into in 2011, the facility previously allowed borrowings of up to $670 million and was set to expire in 2016. Based on HEICO’s credit characteristics, the bank group twice extended the facility’s expiration. Certain other amendments provided additional financial flexibility.
Laurans A. Mendelson, HEICO’s chairman and CEO, along with co-presidents Eric A. Mendelson and Victor H. Mendelson, remarked “HEICO’s financial strength, coupled with a very strong group of lenders, allowed us to enter into this credit expansion and term extension. Our expanded facility will enable us to continue investing in and growing our business, while maintaining a low cost of capital to execute on our strategic plans.”
HEICO is engaged in niche segments of the aviation, defense, space, medical, telecommunications and electronics industries through its Hollywood, FL-based Flight Support Group and its Miami-based Electronic Technologies Group.