HEICO Corporation has entered into an amended, senior unsecured revolving credit facility with a banking syndicate led by SunTrust Robinson Humphrey, Inc. and J.P. Morgan Securities, Inc. The amendment increases the revolving credit commitment amount from $130 million to $300 million, which may be increased to $500 million under certain circumstances. The borrowings under the amended credit facility bear interest at spreads over LIBOR rates ranging from 62.5 to 225 basis points based on leverage measurements and mature in May, 2013. Under certain circumstances, the maturity may be extended for two one-year periods.
The new facility provides the Company additional flexibility for its capital needs. HEICO has historically used its revolving credit facility principally to fund acquisitions and anticipates that the replacement facility will also be used mainly for acquisitions. Among other new features designed to increase HEICO’s flexibility, the replacement facility allows the Company to borrow a portion of the facility in Euros.