HEICO Corp (HEI) Amends Revolving Credit Agreement

This summary was generated by AI from the company's SEC filing and may contain errors — always verify against the primary source on SEC.gov.

The short version

HEICO Corp (HEI) filed an 8-K on June 17, 2026, reporting that it entered into a third amendment to its existing revolving credit agreement (a flexible business loan it can draw on and repay as needed). The amendment updates interest rate pricing tiers, raises the threshold at which a missed debt payment triggers a default event from $150 million to $225 million, and caps cash dividends and buybacks (known as "restricted payments") at $500 million from the amendment's effective date through the loan's maturity. The filing states the amendment does not cancel or replace the original credit agreement — it simply modifies it.

HEICO Corp (NYSE: HEI) disclosed on June 17, 2026, that it signed a third amendment to its revolving credit agreement — a flexible business loan the company can draw on and repay as needed — according to an 8-K filing with the SEC (the U.S. securities regulator).

What Changed

Interest rate pricing tiers. The amendment lays out a revised schedule of interest rates HEICO pays on borrowings. The rate depends on either HEICO's credit ratings from agencies such as S&P, Fitch, and Moody's, or the ratio of its total debt to earnings (called the "total leverage ratio"). For example, at the top pricing tier (Category I), the interest rate on standard loans is 0.750% above a benchmark rate, while the annual fee for keeping the credit line available (the "commitment fee") is 0.090%.

Higher default threshold for missed debt payments. Under the updated agreement, HEICO or a subsidiary would only trigger a default — a formal breach of the loan terms — if it misses payments on outside debt totaling more than $225 million. The previous limit was $150 million, according to the filing.

Cap on dividends and share buybacks. The amendment limits the total amount HEICO can pay out in cash dividends and share repurchases (called "restricted payments") to $500 million from the date the third amendment takes effect through the loan's maturity date.

Extension requests. The filing states HEICO may request to extend the loan's maturity date by one calendar year at a time, but no more than two such requests are allowed after this third amendment takes effect.

What Did Not Change

The filing is clear that this amendment modifies the existing credit agreement rather than replacing it. All outstanding loans and other amounts owed continue under the same agreement. The filing also states that any existing defaults under the prior agreement are not automatically waived by this amendment.

Key facts

Company: HEICO Corp, ticker HEI, CIK 0000046619

Filing: 8-K filed June 17, 2026, Items 1.01 and 9.01

Event: Third amendment to existing revolving credit agreement

Debt-payment default threshold raised from $150 million to $225 million

Cash restricted payments (dividends and buybacks) capped at $500 million from the Third Amendment Effective Date through maturity

Maximum of two maturity-date extension requests allowed after the Third Amendment Effective Date

Amendment does not constitute a novation (replacement) of the existing credit agreement

Why it matters

The most financially significant change for investors is the increase in the cross-default threshold — the dollar amount of missed outside-debt payments that would formally breach the credit agreement — from $150 million to $225 million. This gives HEICO more cushion before a payment problem on other debt could ripple into its revolving credit facility. The $500 million cap on cash dividends and buybacks from the amendment's effective date onward is also worth noting, as it sets a defined ceiling on capital returns to shareholders for the remaining life of the facility. Together, the changes suggest the company and its lenders are recalibrating the agreement, likely to reflect HEICO's current debt load and financial profile following recent acquisition activity referenced in the filing.

Frequently asked

What is HEICO amending?

HEICO is amending its existing revolving credit agreement — a flexible business loan it can draw on and repay as needed. This is the third amendment to that agreement.

What is the new cross-default threshold in the amended agreement?

Under the updated terms, a missed payment on outside debt only triggers a default under the credit agreement if the debt involved exceeds $225 million. The previous threshold was $150 million.

How much can HEICO pay out in dividends and share buybacks under the new terms?

The amendment caps total cash dividends and share repurchases (called restricted payments) at $500 million from the date the third amendment takes effect through the loan's maturity date.

Does this amendment replace HEICO's existing credit agreement?

No. The filing explicitly states the amendment modifies the existing agreement and is not intended to replace or cancel it. All outstanding loans continue under the same agreement.

What the filing reported

1.01 Entry into a Material Agreement

9.01 Financial Statements & Exhibits