Summary
Quanta Services, Inc. (PWR) announced on December 23, 2015, the execution of a Fourth Amended and Restated Credit Agreement, effective December 18, 2015. This significant refinancing establishes a new senior secured revolving credit facility totaling $1.810 billion, maturing on December 18, 2020. The facility provides substantial liquidity for revolving loans and letters of credit in both U.S. and certain alternative currencies, with provisions for an additional $400 million increase. The primary purposes of this credit facility are to refinance existing indebtedness and support ongoing operational needs, including working capital, capital expenditures, and general corporate purposes. The agreement also outlines the terms for borrowings, including interest rate options based on the Eurocurrency Rate or Base Rate, which vary according to the Company's Consolidated Leverage Ratio. A commitment fee on unused availability is also detailed. Notably, the credit facility is secured by substantially all of the Company's and its wholly-owned U.S. subsidiaries' assets, with collateral release contingent upon achieving an Investment Grade Rating. This refinancing demonstrates Quanta Services' efforts to optimize its capital structure and ensure financial flexibility for future growth and operations.
Key Highlights
- 1Quanta Services entered into a Fourth Amended and Restated Credit Agreement on December 18, 2015.
- 2The new facility is a $1.810 billion senior secured revolving credit facility maturing on December 18, 2020.
- 3The credit facility allows for borrowings and letters of credit in U.S. dollars and certain alternative currencies.
- 4There is an option to increase the revolving commitments by an additional $400 million.
- 5Funds are to be used for refinancing existing debt, working capital, capital expenditures, and general corporate purposes.
- 6The facility is secured by substantially all of the Company's and its U.S. subsidiaries' assets, with provisions for collateral release upon achieving an Investment Grade Rating.
- 7Interest rates and fees are variable, dependent on the Company's Consolidated Leverage Ratio.