HEICO Corporation Closes $1.2 Billion Investment Grade Senior Notes Offering

HOLLYWOOD, FL / ACCESSWIRE / July 27, 2023 / HEICO Corporation (NYSE:HEI.A)(NYSE:HEI) today announced that it closed an offering of $600 million in aggregate principal amount of 5.250% Senior Notes due 2028 (the "2028 Notes") and $600 million in aggregate principal amount of 5.350% Senior Notes due 2033 (the "2033 Notes", and together with the 2028 Notes, the "Notes").

HEICO intends to use the net proceeds from the sale of the Notes to fund a portion of the purchase price for the acquisition of Wencor Group (the "Wencor Acquisition"), including related fees and expenses, and, use any remaining amounts, for general corporate purposes. HEICO temporarily used a portion of the net proceeds to repay outstanding borrowings under its revolving credit agreement and may invest funds that are not immediately needed for these purposes in short-term investments, including marketable securities.

Laurans A. Mendelson, HEICO's Chairman & Chief Executive Officer, along with Co-Presidents, Eric A. Mendelson and Victor H. Mendelson remarked, "HEICO's excellent performance and credit profile enabled us to achieve an investment grade rating on our inaugural notes offering, which allows us to efficiently finance a portion of the Wencor Acquisition." Carlos L. Macau Jr., HEICO's Executive Vice President & Chief Financial Officer, added, "The recent notes offering has allowed us to diversify our capital structure and position HEICO for continued growth and success. We are committed to our investment grade rating, and plan to reduce our leverage to historical norms over the next few years."

Subject to the receipt of customary closing conditions and required regulatory approvals, the Wencor Acquisition is expected to close by the end of calendar year 2023. If the closing of the Wencor Acquisition has not occurred on or prior to the earlier of (i) February 14, 2024 (subject to extension to such later date), or (ii) the date the Agreement and Plan of Merger, dated May 15, 2023, including any amendment thereof, is terminated, HEICO will redeem the 2033 Notes in whole at a special mandatory redemption price equal to 101% of the aggregate principal amount of such Notes, plus accrued and unpaid interest on the principal amount of such notes.