Summary
Quanta Services, Inc. (PWR) filed an 8-K on August 8, 2011, to report the execution of a Second Amended and Restated Credit Agreement, effective August 2, 2011. This agreement establishes a new $700.0 million senior secured revolving credit facility, maturing in August 2016. The facility provides significant flexibility for letters of credit, swing line loans, and potential up to a $300.0 million increase option. This refinancing and new credit facility will be used for various corporate purposes, including refinancing existing debt, working capital, capital expenditures, and other general corporate needs. The new credit agreement is secured by substantially all assets of the company and its U.S. subsidiaries, with provisions for collateral release upon achieving certain credit rating thresholds. The agreement includes customary covenants, financial ratios, and events of default, aimed at maintaining financial health and operational flexibility for Quanta Services.
Key Highlights
- 1Execution of a Second Amended and Restated Credit Agreement effective August 2, 2011.
- 2Establishment of a $700.0 million senior secured revolving credit facility maturing on August 2, 2016.
- 3Facility includes up to $300.0 million in potential commitment increases.
- 4Funds are earmarked for refinancing existing debt, working capital, capital expenditures, and general corporate purposes.
- 5The credit facility is secured by substantially all assets of the Company and its wholly owned U.S. subsidiaries.
- 6Collateral release provisions are tied to achieving specific credit rating milestones (BBB-/Baa3 stable).
- 7The agreement includes standard covenants, financial ratio requirements, and events of default.