HEICO Corporation Announces 25% Increase in Credit Facility
24 April 2017 - 11:00PM
HEICO Corporation (NYSE:HEI.A) (NYSE:HEI) today announced that it
increased its revolving credit facility (the “Facility”) to $1
billion, which is a $200 million, or 25%, increase to the
Facility’s previous, $800 million limit. This Facility’s term
expires in December 2018 and there are no maturities under the
Facility until then.
HEICO has used the Facility, which is available for general
corporate purposes, principally to make acquisitions. Since
1996, the Company has completed approximately 60 acquisitions and
remains committed to disciplined capital allocation. The
Company expects to soon close its previously announced pending
acquisition of Air Cost Control. Further, the Company
continues to review numerous acquisition candidates and to seek
additional acquisitions.
The Facility is lead-managed by SunTrust, Bank of America and
Wells Fargo. The $200 million increase resulted from the
exercise of the Facility’s “accordion” feature, which was subject
to the consent of HEICO’s lenders.
Laurans A. Mendelson, HEICO's Chairman and Chief Executive
Officer, along with Co-Presidents, Eric A. Mendelson and Victor H.
Mendelson remarked, “We are pleased to expand our credit facility
capacity to $1 billion and to have such strong support and
confidence from our lenders. HEICO’s financial strength,
coupled with our expanded funding capacity, should allow us to
continue executing our strategic goals.”
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 or HEIa.
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.
Contact:
Victor H. Mendelson (305) 374-1745
Carlos L. Macau, Jr. (954) 987-4000
HEICO (NYSE:HEI)
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