HEICO Corporation Increases Credit Facility to $2.2 Billion

HEICO (NYSE:HEI) expanded its unsecured revolving credit facility to $2.2 billion, up from $2.0 billion, with a maturity extended to 2031.

Rhea-AI Summary

HEICO (NYSE:HEI) expanded its unsecured revolving credit facility to $2.2 billion, up from $2.0 billion, with a maturity extended to 2031. The Facility includes an accordion feature up to $3 billion and bears interest at SOFR + 75–125 bps, tied to HEICO’s investment-grade rating.

According to HEICO, proceeds will primarily fund acquisitions and general corporate purposes, supporting its long-running acquisition strategy of over 110 deals since 1996.

Positive

• Unsecured revolving credit facility increased to $2.2 billion from $2.0 billion
• Facility maturity extended to 2031, lengthening HEICO’s debt runway
• Accordion feature allows potential Facility expansion up to $3 billion
• Interest rate set at SOFR + 75–125 bps, linked to investment-grade rating
• Proceeds intended to fund acquisitions and general corporate purposes

Negative

• None.

Argus Jun 12 session

-2.24% close to close Open Argus

Details

News Market Reaction – HEI

In the Jun 12 session, HEI declined 2.24%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement expands HEICO’s unsecured revolving credit facility to $2.2B, with an accordion fe...

Analysis

This announcement expands HEICO’s unsecured revolving credit facility to $2.2B, with an accordion feature up to $3B and maturity extended to 2031. Borrowings are priced at SOFR plus 75–125 bps, tied to its investment‑grade rating. The Facility is earmarked primarily for acquisitions, fitting a history of 110+ deals. Investors may watch future transaction pace, leverage trends, and how added capacity supports earnings accretion over time.

Key Figures

Credit facility size: $2.2 billion Prior facility limit: $2.0 billion Facility increase: $200 million +5 more

Credit facility size

$2.2 billion

New unsecured revolving credit facility limit

Prior facility limit

$2.0 billion

Previous Facility size before increase

Facility increase

$200 million

Incremental increase over prior $2.0B limit

Accordion feature

$3.0 billion

Maximum Facility size if accordion is fully exercised

Maturity extension

2031

New Facility maturity date

Interest margin range

75–125 basis points

Spread over SOFR on Facility borrowings

Acquisition track record

Over 110 acquisitions

Completed since 1996 per company statement

Acquisition strategy start

1996

Year from which HEICO counts its 110+ acquisitions

Historical Context

5 past events · Latest: Jun 10

5 events

1. Jun 10

   Acquisition announcement

   24h Move

   -1.7%

   Exxelia unit acquired 90% of CalRamic, expected accretive within a year.

2. Jun 03

   Acquisition announcement

   24h Move

   -0.9%

   Acquisition of Cook Defence Systems to expand armored vehicle track exposure.

3. May 27

   Earnings results

   24h Move

   +11.5%

   Record Q2 net income, sales and operating income with strong margins.

4. May 06

   Conference call notice

   24h Move

   -2.3%

   Announcement of timing and details for Q2 earnings conference call.

5. Apr 13

   Acquisition announcement

   24h Move

   +1.6%

   Acquisition of 80% of Sherwood Aviation, expanding MRO capabilities.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

unsecured revolving credit facility, accordion feature, secured overnight financing rate ("sofr"), basis points, +2 more

6 terms

unsecured revolving credit facility financial

"increased its existing credit facility to a $2.2 billion unsecured revolving credit facility"

A revolving credit facility is a line of borrowing that a company can draw from, repay, and draw again up to a set limit; “unsecured” means the loans are not backed by specific assets as collateral. Investors care because it acts like a corporate credit card—giving short‑term cash flexibility to cover operations or unexpected needs—while signaling lenders’ confidence and affecting interest costs, default risk, and the company’s financial stability.

accordion feature financial

"record-size Facility includes an accordion feature allowing it to be increased to $3 billion"

An accordion feature is a clause in a loan or financing agreement that allows a company to expand the size of a credit line or the amount of securities available under the same contract without drafting a completely new deal. Like a suitcase that can be extended to hold more items, it gives a company quick flexibility to raise extra money, which can help fund growth but may increase debt or dilute existing shareholders—so investors watch it for changes in risk and ownership.

secured overnight financing rate ("sofr") financial

"Borrowings under the Facility bear interest at the Secured Overnight Financing Rate ("SOFR") plus an applicable margin"

A secured overnight financing rate (SOFR) is a daily benchmark interest rate that reflects the actual cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it serves as a reference for loans, bond yields and interest-rate contracts; think of it as the going overnight price to rent money—small changes in that price influence borrowing costs, investment returns and the valuation of interest-sensitive assets.

basis points financial

"applicable margin ranging from 75 to 125 basis points, which is indexed to HEICO's investment grade rating"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

investment grade rating financial

"margin ranging from 75 to 125 basis points, which is indexed to HEICO's investment grade rating"

An investment grade rating is a score assigned by a credit-rating agency indicating that a bond issuer or debt is considered reasonably safe and likely to repay its obligations. Investors treat it like a safety label—similar to a product receiving a good quality seal—because higher ratings mean lower risk of default, usually lower borrowing costs for the issuer, and greater appeal to conservative investors and large funds.

forward-looking statements regulatory

"Certain statements in this press release constitute forward-looking statements, which are subject to risks"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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MIAMI, FL AND HOLLYWOOD, FL / ACCESS Newswire / June 12, 2026 / HEICO Corporation (NYSE:HEI.A)(NYSE:HEI) today announced that it increased its existing credit facility to a $2.2 billion unsecured revolving credit facility (the "Facility"), which is a $200 million increase to the Facility's previous $2 billion limit. The Facility is with a banking syndicate led by Joint Lead Arrangers Truist Bank, Bank of America, Wells Fargo, PNC, TD Bank, and Crédit Agricole. Other participating banks are Huntington, JPMorgan, RBC, and M&T Bank. Additionally, the Facility's maturity date has been extended to 2031.

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

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did HEICO (NYSE:HEI) announce about its credit facility on June 12, 2026?

HEICO announced an increase of its unsecured revolving credit facility to $2.2 billion. According to HEICO, this represents a $200 million expansion from the prior $2.0 billion limit and is aimed at supporting acquisitions and general corporate purposes while extending liquidity.

What are the key terms of HEICO’s new $2.2 billion credit facility (HEI)?

HEICO’s credit facility is now a $2.2 billion unsecured revolving line maturing in 2031. According to HEICO, borrowings bear interest at SOFR plus 75–125 basis points, with pricing indexed to the company’s investment-grade rating, and include an accordion option to $3 billion.

How will HEICO use the expanded $2.2 billion credit facility for acquisitions?

HEICO plans to use Facility proceeds primarily to fund acquisitions and general business needs. According to HEICO, the larger revolver and 2031 maturity provide financial flexibility to continue its disciplined acquisition strategy, having completed over 110 acquisitions since 1996.

Which banks are part of HEICO’s 2026 $2.2 billion credit facility syndicate?

The Facility is led by Truist Bank, Bank of America, Wells Fargo, PNC, TD Bank and Crédit Agricole. According to HEICO, other participants include Huntington, JPMorgan, RBC and M&T Bank, forming a diversified lending group supporting the company’s capital needs.

When does HEICO’s expanded credit facility mature and what is the accordion feature?

HEICO’s enlarged revolving credit facility now carries a maturity date in 2031. According to HEICO, the agreement includes an accordion feature that, under certain conditions, allows the total committed amount to be increased from $2.2 billion up to $3 billion.

What interest rate applies to HEICO’s $2.2 billion revolving credit facility (HEI)?

Borrowings under HEICO’s Facility bear interest at SOFR plus 75–125 basis points. According to HEICO, the applicable margin depends on its investment-grade credit rating, linking borrowing costs to the company’s financial strength and influencing overall financing expense over the Facility’s life.