Watsco Upsizes Unsecured Revolving Credit Facility to $750 Million

Credit Agreement Refinancing Overview

On October 21, 2026, Watsco, Inc. (NYSE: WSO, WSOB) entered into an unsecured, five-year $750.0 million syndicated multicurrency credit agreement with Bank of America, N.A. serving as Administrative Agent, Swing Line Lender, and L/C Issuer, alongside a syndicate of commercial lenders. The facility matures on October 21, 2031.

Key Terms & Structure

• Facility Size: $750.0 million (expanded from the prior $600.0 million facility).
• Sublimits:
  • $125.0 million swing line loan sublimit
  • $10.0 million letter of credit sublimit
  • $150.0 million multicurrency sublimit (available in Euros, Pounds Sterling, and Canadian Dollars)
• Accordion Feature: Permits up to $375.0 million of incremental revolving increases or term loans across up to six requests.
• Seasonal Adjustment: Allows Watsco to elect to reduce borrowing capacity by $100.0 million, $200.0 million, or $300.0 million during a seasonal window (September 1 to March 1).
• Initial Draw: Watsco drew $69.7 million on the closing date to extinguish outstanding balances under its prior credit agreement.

Interest Rates & Pricing

• Base Pricing: Borrowings bear interest based on Term SOFR or Daily Simple SOFR plus a spread of 100.0 to 137.5 basis points (100.0 bps at closing), based on leverage ratios.
• Base Rate Option: Available for USD borrowings at the highest of Federal Funds + 0.5%, Prime, 1-month Term SOFR + 1.0%, or 1.0%, plus a margin between 0 and 50 basis points (0 bps at closing).
• Commitment Fee: Ranges from 10.0 to 17.5 basis points (10.0 bps at closing) on the unused portion.

Termination of Prior Agreement

The new credit agreement replaces Watsco's previous $600.0 million credit facility established on March 16, 2023. The prior facility was terminated without any early termination penalties.