8-KFinancial EventsOther EventsExhibits & Filings

QUANTA SERVICES, INC. 8-K Report, Triggering Event (Aug 28, 2008)

Filed August 28, 2008For Securities:PWR

Summary

Quanta Services, Inc. (PWR) announced a notice of redemption for its outstanding 4.50% Convertible Subordinated Debentures due 2023, with an aggregate principal amount of approximately $269.98 million. The redemption is scheduled for October 8, 2008, at a price of 100% of the principal amount plus accrued interest. Importantly, debenture holders have the option to convert their debentures into Quanta common stock at a conversion price of $11.14 per share (89.7989 shares per $1,000 principal amount) instead of receiving the redemption price. Holders must submit a conversion notice by October 6, 2008. Additionally, debenture holders have a repurchase right on October 1, 2008, at 100% of the principal amount plus accrued interest. Due to this repurchase right, the debentures were already reclassified as a current obligation as of October 1, 2007.

Key Highlights

  • 1Quanta Services is redeeming all outstanding 4.50% Convertible Subordinated Debentures due 2023.
  • 2The total principal amount of debentures to be redeemed is approximately $269.98 million.
  • 3The redemption date is set for October 8, 2008.
  • 4Debenture holders have the option to convert their debentures into Quanta common stock at $11.14 per share.
  • 5The conversion option requires a notice to be delivered by October 6, 2008.
  • 6Debenture holders also possess a repurchase right on October 1, 2008.
  • 7The debentures were reclassified as a current liability in October 2007 due to the repurchase option.

Frequently Asked Questions

This 8-K filing announces Quanta Services' intention to redeem its outstanding 4.50% Convertible Subordinated Debentures due 2023 and outlines the options available to debenture holders.

Debenture holders have three main options: 1) accept the redemption at 100% of the principal plus accrued interest, 2) convert their debentures into Quanta common stock at $11.14 per share, or 3) exercise their right to have Quanta repurchase the debentures on October 1, 2008, at 100% of the principal plus accrued interest.

The conversion price is effectively $11.14 per share of Quanta common stock, based on a rate of 89.7989 shares for each $1,000 principal amount of debentures.

For conversion, debenture holders must deliver a conversion notice by 5:00 pm CDT on October 6, 2008. The repurchase option must be exercised on October 1, 2008, and the redemption occurs on October 8, 2008.