HEICO Corporation announced that it closed an offering of $550 million in aggregate principal amount of 4.950% Senior Notes due 2031 and $650 million in aggregate principal amount of 5.400% Senior Notes due 2036. HEICO will use the net proceeds from the sale of the notes to pay down outstanding borrowings under its $2.2 billion revolving credit agreement, leaving the company with substantial ability and flexibility to fund future potential acquisitions.
The offering builds on HEICO’s inaugural notes issuance in 2023, giving the company an efficient way to fund ongoing acquisition activity while expanding its capital sources and providing greater flexibility to pursue continued growth. The company’s well-staggered borrowing maturity schedule is designed to provide planning stability and financial safety going forward.
Truist Securities, BofA Securities, PNC Capital Markets LLC, Wells Fargo Securities, Credit Agricole CIB, and TD Securities served as joint book-running managers for the offering, with Huntington Securities, J.P. Morgan, M&T Securities, and RBC Capital Markets serving as Co-Managers. Akerman LLP served as legal counsel to HEICO, while King & Spalding LLP served as legal counsel to the joint book-running managers.
HEICO Corporation is engaged primarily in the design, production, servicing, and distribution of products and services to 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. The company’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.
KEY QUOTES:
“HEICO’s strong operating performance and solid balance sheet earned investment grade ratings on our existing notes issued in 2023 and the Notes issued today. Building on our inaugural issuance in 2023, this second offering gives us an efficient way to fund ongoing acquisition activity.”
Eric A. Mendelson and Victor H. Mendelson, Co-Chairmen and Co-Chief Executive Officers of HEICO
“This offering expands HEICO’s capital sources and gives HEICO greater flexibility to pursue continued growth. Further, our well-staggered borrowing maturity schedule provides excellent planning and financial safety for the Company.”
Carlos L. Macau Jr., Chief Financial Officer and Executive Vice President of HEICO
