Summary
Quanta Services, Inc. (PWR) has announced the successful issuance of $1.25 billion in aggregate principal amount of senior unsecured notes. This offering consists of $600 million of 4.750% Senior Notes due 2027 and $650 million of 5.250% Senior Notes due 2034. The proceeds from this issuance, facilitated by a group of prominent underwriters, will be used by the company. The notes are governed by an indenture that includes covenants restricting the company's ability to incur liens, engage in certain sale and leaseback transactions, and sell or merge assets, alongside customary events of default.
Key Highlights
- 1Issued $600 million of 4.750% Senior Notes due 2027.
- 2Issued $650 million of 5.250% Senior Notes due 2034.
- 3Total aggregate principal amount of notes issued is $1.25 billion.
- 4The notes are senior unsecured obligations of Quanta Services.
- 5Notes are structurally subordinated to subsidiary indebtedness.
- 6Indenture includes covenants limiting liens, sale/leaseback transactions, and asset sales/mergers.
- 7Includes provisions for redemption at the company's option and upon a Change of Control Triggering Event.
Frequently Asked Questions
Quanta Services has issued a total of $1.25 billion in aggregate principal amount of new debt, comprised of $600 million of 4.750% Senior Notes due 2027 and $650 million of 5.250% Senior Notes due 2034.
The notes are Quanta Services' senior unsecured obligations, ranking equally with existing and future senior unsecured indebtedness. However, they are effectively junior to any secured indebtedness and structurally subordinated to all existing and future indebtedness and liabilities of the company's subsidiaries.
The indenture governing these notes includes covenants that limit the company's ability to incur liens securing certain indebtedness, engage in specific sale and leaseback transactions on certain properties, and to sell all or substantially all of its assets or merge or consolidate with other companies. It also contains customary events of default.
Quanta Services can redeem the 2027 Notes prior to July 9, 2027, and the 2034 Notes prior to May 9, 2034, at a price based on the present value of remaining payments discounted at the Treasury Rate plus a specified basis point premium. After these dates, the company can redeem the notes at 100% of the principal amount. Additionally, holders can require the company to purchase their notes at 101% of the principal amount plus accrued interest upon a Change of Control Triggering Event.