Watsco, Inc. (NYSE:WSO) (PARIS:WSO) today announced that it has
refinanced its existing $500 million unsecured revolving credit
agreement led by JPMorgan Chase Bank as Administrative Agent, Bank of
America and Wells Fargo Bank as Co-Syndication Agents and U.S. Bank
National Association as Documentation Agent.
Borrowings under the credit agreement bear interest at different rates
depending on the types of advances or loans the Company selects and as a
result of this amendment the spread on its available borrowing rates
(LIBOR-based primarily) have been decreased to reflect lower pricing.
The amendment includes improved covenant flexibility to reflect the
seasonal nature of our working capital requirements.
Additionally, the maturity date under the amended credit facility was
extended from April 27, 2017 to July 1, 2018. All other major terms
under the facility remain unchanged. Watsco uses proceeds under the
facility for working capital, acquisitions, dividends and other general
corporate purposes.
Albert Nahmad, Watsco’s Chairman & Chief Executive Officer said: “A
committed source of low-cost debt capital is an important building block
of our growth strategy. We appreciate the confidence in Watsco shown by
our participating lenders in the syndication.”
Watsco improves indoor living and working environments with air
conditioning and heating solutions that provide comfort regardless of
the outdoor climate. Our solutions also promote healthier indoor spaces
by removing pollutants from the indoor air that can lead to asthma,
allergies and reductions in productivity. Furthermore, since heating and
cooling accounts for approximately 56% of the energy consumed in a
typical United States home, we offer consumers the greatest opportunity
to save money on energy by replacing existing air conditioning and
heating systems with more energy efficient and environmentally friendly
solutions.
There are approximately 89 million central air conditioning and heating
systems installed in the United States that have been in service for
more than 10 years. Older systems often operate below today’s government
mandated energy efficiency and environmental standards. Watsco has an
opportunity to accelerate the replacement of these systems at a scale
greater than our competitors as the movement toward reducing energy
consumption and its environmental impact continues. We operate from more
than 570 locations in the United States, Canada, Mexico and Puerto Rico,
with additional market coverage on an export basis to Latin America and
the Caribbean. As the industry leader, significant growth potential
remains given that our current revenue run-rate is approximately 10% of
the estimated $35 billion marketplace in the Americas for HVAC/R
products. Additional information about Watsco may be found at http://www.watsco.com.
This document includes certain “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. 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 markets, consumer spending and debt
levels, regulatory and other factors, including, without limitation, the
effects of supplier concentration, competitive conditions within
Watsco’s industry, seasonal nature of sales of Watsco’s products, the
ability of the Company to expand its business, insurance coverage risks
and final GAAP adjustments. Forward-looking statements speak only as of
the date the statement was 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. 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.
Copyright Business Wire 2013