Summary
Quanta Services, Inc. (PWR) has filed an 8-K report detailing a significant amendment to its credit agreement, effective October 10, 2018. This amendment substantially increases the company's borrowing capacity, raising the aggregate revolving credit facility to $1.985 billion and introducing a new $600 million term loan facility, bringing the total credit facilities to $2.585 billion. This provides the company with enhanced financial flexibility and liquidity to support its operations and growth initiatives. The company has also leveraged this amendment to secure additional funds by drawing the full $600 million term loan to repay existing revolving credit borrowings. The credit agreement now includes provisions for potential further increases in credit facilities by up to an additional $400 million, subject to lender commitments. These changes, while increasing the overall debt capacity, do not alter the maturity date of October 31, 2022, for both the revolving and term loan facilities. The amendment also includes adjustments to swing line loan limits and cross-default thresholds, alongside details on interest rate structures and amortization schedules for the new term loan.
Key Highlights
- 1Increased total credit facilities to $2.585 billion, up from previous levels.
- 2Established a new $600 million Term Loan Facility, with proceeds used to repay outstanding revolving credit borrowings.
- 3Raised the aggregate Revolving Credit Facility to $1.985 billion.
- 4Company has the option to increase total credit facilities by an additional $400 million.
- 5Maturity date for both the Revolving Credit Facility and the Term Loan Facility remains October 31, 2022.
- 6Amended agreement includes adjustments to swing line loan capacity for Australian dollars and cross-default thresholds.
- 7The credit agreement is secured by substantially all of the company's assets and pledges of subsidiary stock, with guarantees from U.S. subsidiaries.