Debt Obligations

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Debt Obligations

8. DEBT OBLIGATIONS:

Quanta’s long-term debt obligations consisted of the following (in thousands):

	March 31, 2023		December 31, 2022
0.950% Senior Notes due October 2024	$	500,000	$	500,000
2.900% Senior Notes due October 2030	1,000,000		1,000,000
2.350% Senior Notes due January 2032	500,000		500,000
3.050% Senior Notes due October 2041	500,000		500,000
Borrowings under senior credit facility (including Term Loan)	942,100		786,910
Borrowings under commercial paper program	598,750		373,000
Other long-term debt	92,268		92,907
Finance leases	16,577		3,542
Unamortized discount and financing costs	(25,596)		(26,432)
Total long-term debt obligations	4,124,099		3,729,927
Less — Current maturities of long-term debt	39,691		37,495
Total long-term debt obligations, net of current maturities	$	4,084,408	$	3,692,432

Senior Notes

The interest amounts due on Quanta’s senior notes on each payment date are set forth below (dollars in thousands):

Title of the Notes	Interest Amount		Payment Dates	Commencement Date
0.950% Senior Notes due October 2024	$	2,375	April 1 and October 1	April 1, 2022
2.900% Senior Notes due October 2030	$	14,500	April 1 and October 1	April 1, 2021
2.350% Senior Notes due January 2032	$	5,875	January 15 and July 15	July 15, 2022
3.050% Senior Notes due October 2041	$	7,625	April 1 and October 1	April 1, 2022

The fair value of Quanta’s senior notes was $2.08 billion as of March 31, 2023, compared to a carrying value of $2.48 billion net of unamortized bond discount, underwriting discounts and deferred financing costs of $23.0 million. The fair value of the senior notes is based on the quoted market prices for the same issue, and the senior notes are categorized as Level 1 liabilities.

Senior Credit Facility

The credit agreement for Quanta’s senior credit facility (as amended, the credit agreement) provides for a $750.0 million term loan facility and aggregate revolving commitments of $2.64 billion, with a maturity date of October 8, 2026. Borrowings under the senior credit facility and the applicable interest rates were as follows (dollars in thousands):

	Three Months Ended
	March 31,
	2023			2022
Maximum amount outstanding	$	956,308		$	1,451,597
Average daily amount outstanding	$	859,270		$	1,256,150
Weighted-average interest rate	5.99		%	1.71		%

As of March 31, 2023, Quanta was in compliance with all of the financial covenants under the credit agreement.

Term Loan. As of March 31, 2023, Quanta had $745.3 million outstanding under its term loan facility. The carrying amount of the term loan under Quanta’s senior credit facility approximates fair value due to its variable interest rate.

Revolving Loans. As of March 31, 2023, Quanta had $196.8 million of outstanding revolving loans under the senior credit facility, all of which were denominated in Canadian dollars. The carrying amounts of the revolving borrowings under Quanta’s senior credit facility approximate fair value, as all revolving borrowings have a variable interest rate.

As of March 31, 2023, Quanta also had $272.2 million of letters of credit issued under the senior credit facility, of which $175.3 million were denominated in U.S. dollars and $96.9 million were denominated in currencies other than the U.S. dollar, primarily Australian and Canadian dollars. Additionally, available commitments for revolving loans under the senior credit facility must be maintained in order to provide credit support for notes issued under Quanta’s commercial paper program, and therefore such notes effectively reduce the available borrowing capacity under the senior credit facility.

As of March 31, 2023, $1.57 billion remained available under the senior credit facility for new revolving loans, letters of credit and support of the commercial paper program.

Deferred Financing Costs. As of March 31, 2023 and December 31, 2022, capitalized deferred financing costs, net of accumulated amortization, related to Quanta’s revolving loans under its senior credit facility and commercial paper program were $7.8 million and $8.3 million and are included in “Other assets, net” in the accompanying condensed consolidated balance sheets. Amortization of deferred financing costs for all debt instruments and the discount related to notes issued under the commercial paper program are included in interest and other financing expenses and were, in the aggregate, $8.1 million and $1.5 million for the three months ended March 31, 2023 and 2022.

Commercial Paper Program

Quanta had $598.8 million of outstanding notes under its unsecured commercial paper program as of March 31, 2023, with a weighted average interest rate of 5.9%. During the three months ended March 31, 2023, under this program, Quanta had maximum borrowings outstanding of $747.7 million, weighted average borrowings outstanding of $494.6 million, a weighted average interest rate of 5.4% and a weighted average maturity of 14 days. The carrying amounts of the notes issued under Quanta’s commercial paper program approximate fair value, as all notes currently have a short maturity.

Additional Letters of Credit

As of March 31, 2023 Quanta had $190.1 million of surety-backed letters of credit issued outside of its senior credit facility, which were denominated in U.S. dollars.