Watsco Completes $750 Million Unsecured Senior Credit Facility

The five-year facility increases borrowing capacity and adds covenant flexibility while refinancing outstanding borrowings.

Rhea-AI Summary

Watsco (WSO) signed a $750 million unsecured senior revolving credit facility that amends and extends its existing credit facility. The new facility has a five-year term. Borrowings were used to repay $69.7 million outstanding under the prior facility.

Bank of America leads the bank group as administrative agent and sole bookrunner. Terms include increased borrowing capacity, covenant flexibility and greater sensitivity to seasonal working capital requirements. Additional borrowings will support working capital, acquisitions, dividends and other general purposes. Interest rates depend on the types of advances or loans selected.

2 points · 0 major

PositiveiHow this balance works

How this balance works

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0 major · 2 points

How the balance works

Positive

• Moderate point$750 million unsecured revolving facility provides committed borrowing capacity over a five-year term. 6% of market cap
• Minor pointRevised terms add covenant flexibility and greater sensitivity to seasonal working capital requirements.

Negative

• Minor pointBorrowings under the new facility replace $69.7 million of prior borrowings rather than eliminate that debt.
• Minor pointInterest costs depend on the types of advances or loans Watsco selects.

Key Figures

Facility size: $750 million Facility term: Five years Prior-facility borrowings repaid: $69.7 million

Facility size

$750 million

Unsecured senior revolving credit facility

Facility term

Five years

Term of the unsecured credit facility

Prior-facility borrowings repaid

$69.7 million

Repaid using borrowings under the new facility

Key Terms

revolving credit facility, joint lead arranger, administrative agent

3 terms

revolving credit facility financial

"a $750 million unsecured senior revolving credit facility"

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

joint lead arranger financial

"as Joint Lead Arranger, Sole Bookrunner and Administrative Agent"

A joint lead arranger is one of the main banks or financial firms that organize and put together a large syndicated loan, sharing responsibility for structuring terms, finding other lenders, and dividing the loan among the group. Think of them as co-project managers who coordinate a team to fund a big purchase; their reputation, diligence and negotiated terms matter to investors because they influence the loan’s price, risk allocation and likelihood of repayment.

administrative agent financial

"Sole Bookrunner and Administrative Agent"

An administrative agent is a bank or financial firm appointed to handle the day-to-day paperwork and communication for a group of lenders on a loan or credit agreement, acting as the central point for collecting payments, distributing funds, monitoring covenants, and sharing information. For investors, the administrative agent matters because it influences how quickly lenders receive updates, how smoothly repayments and waivers are handled, and how effectively the lending group enforces terms — think of it as a property manager coordinating tasks for multiple owners.

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MIAMI, Oct. 22, 2026 (GLOBE NEWSWIRE) -- Watsco, Inc. (NYSE: WSO) today announced that it has signed a $750 million unsecured senior revolving credit facility led by Bank of America, N.A. as Joint Lead Arranger, Sole Bookrunner and Administrative Agent and JPMorgan Chase Bank, N.A., PNC Bank, N.A., Wells Fargo Bank, N.A., and U.S. Bank N.A. as Joint Lead Arrangers and Co-Syndication Agents, along with five other banks. The new facility amends and extends Watsco’s existing unsecured revolving credit facility.

Borrowings under the five-year $750 million unsecured credit facility were used to repay outstanding borrowings of $69.7 million under the prior credit facility. Any additional borrowings will be used for working capital, acquisitions, dividends and other general purposes and bear interest at different rates depending on the types of advances or loans the Company selects. Terms of the agreement include increased borrowing capacity, covenant flexibility and greater sensitivity to the seasonal nature of our working capital requirements. 

Barry S. Logan, Watsco’s Executive Vice President said: “A committed source of low-cost debt is an important building block of our growth strategy. We appreciate the strong support and commitment from our relationship banks.” 

About Watsco 

Watsco is the largest distributor in the highly fragmented North American HVAC market. Since entering distribution in 1989, Watsco has achieved a 17% compounded annual total shareholder return through a combination of organic growth and the acquisition of more than 70 market-leading businesses.

Watsco maintains a solid balance sheet, enabling sustained investments in growth, including the Company’s industry-leading technologies. Today, more than 73,000 contractors and technicians engage digitally, empowering them to adopt and integrate Watsco’s tools into their daily operations. The Company is also introducing AI-driven initiatives to leverage its extensive data assets and enrich the customer experience. The Company believes its technology ecosystem represents a durable and widening competitive advantage in its highly fragmented industry.

This document includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, our expected financial and operational results and the related assumptions underlying our expected results. These forward-looking statements are distinguished by use of words such as “will,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” or “intend,” the negative of these terms, and similar references to future periods. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in economic, business, competitive market, new housing starts and completions, capital spending in commercial construction, consumer spending and debt levels, regulatory and other factors, including, without limitation, the effects of supplier concentration, competitive conditions within Watsco’s industry, the seasonal nature of sales of Watsco’s products, the ability of the Company to expand its business, insurance coverage risks and final GAAP adjustments. Detailed information about these factors and additional important factors can be found in the documents that Watsco files with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements speak only as of the date the statements were made. Watsco assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, except as required by applicable law.

Barry S. Logan	Watsco, Inc.
Executive Vice President	2665 S. Bayshore Drive, Suite 901
(305) 714-4102	Miami, FL 33133, USA
e-mail: blogan@watsco.com	(305) 714-4100
	www.watsco.com

FAQ

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

How large is Watsco's new credit facility and how long does it last?

Watsco signed a $750 million unsecured senior revolving credit facility with a five-year term. It amends and extends the existing unsecured revolving facility, with increased borrowing capacity and revised covenant terms.

How is Watsco using borrowings under its new credit facility?

Borrowings under the new facility repaid $69.7 million outstanding under the prior facility. Additional borrowings will be used for working capital, acquisitions, dividends and other general purposes.