Comfort Systems lifts line of credit to $850 million, extends to 2027

By Wendy Van Sickle

Columbus, Ohio, May 26 – Comfort Systems USA, Inc. amended its credit facility on Thursday, increasing the line of credit to $850 million from $600 million, according to an 8-K filing with the Securities and Exchange Commission.

The facility includes an option to increase commitments by the greater of $250 million and 1.0x the company’s consolidated EBITDA. It will expire on July 5, 2027.

Wells Fargo Bank, NA is the administrative agent and lead arranger.

The line of credit includes up to $175 million issuable in the form of letters of credit.

The facility requires that the ratio of consolidated total debt, minus unrestricted cash and cash equivalents up to $100 million, to consolidated EBITDA not exceed 3.5 times as of the end of each fiscal quarter.

There is also a minimum interest coverage ratio of 3 times.

The facility permits unlimited acquisitions when the company’s net leverage is less than or equal to 3.25 times.

Comfort Systems is a Houston provider of commercial/industrial heating, ventilation and air conditioning services.

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