Watsco closes $600 million five-year replacement revolver

By Marisa Wong

Los Angeles, March 17 – Watsco, Inc. announced it signed a $600 million unsecured revolving credit facility led by Bank of America, NA as administrative agent, JPMorgan Chase Bank, NA as syndication agent and Wells Fargo Bank, NA and U.S. Bank NA as documentation agents and including six other banks.

In anticipation of the cessation of Libor, this facility is linked to SOFR, according to a press release.

The five-year revolver bears interest at different rates depending on the types of advances or loans. Exact pricing was not disclosed in the press release.

Terms of the agreement include increased borrowing capacity, covenant flexibility and greater sensitivity to the seasonal nature of the company’s working capital requirements.

Borrowings will be used for working capital, acquisitions, dividends and other general purposes.

The new revolver replaces Watsco’s existing $560 million unsecured revolver.

Watsco is a Miami-based distributor for heating, air conditioning and refrigeration products.

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