Watsco (WSO) Could Be 13% Undervalued As New Credit Facility Adds Flexibility

What Watsco’s new credit facility means for investors Watsco (WSO) just locked in a five year, US$750 million unsecured revolving credit facility, a move that reshapes its access to cash for working capital, acquisitions, dividends and general corporate needs. The agreement amends and extends the prior line, increases overall borrowing capacity and introduces more flexible covenants that align better with the seasonal swings in HVAC related inventory and receivables. Watsco’s new credit...