Note 9 - Debt

The following table provides details of the carrying values of debt as of the dates indicated (in millions):



Description	Maturity Date	June 30, 2014			December 31, 2013
Senior secured credit facility	October 29, 2018	$	398.4		$	53.0
4.875% senior notes	March 15, 2023	400.0			400.0
2011 4.0% senior convertible notes	June 15, 2014	—			103.8
2011 4.25% senior convertible notes	December 15, 2014	95.7			94.5
2009 4.0% senior convertible notes	June 15, 2014	—			9.6
2009 4.25% senior convertible notes	December 15, 2014	3.0			3.0
Other credit facilities	Varies	46.8			—
Capital lease obligations, weighted average interest rate of 2.9%	In installments through June 13, 2021	169.2			126.0
Notes payable, equipment, weighted average interest rate of 3.2%	In installments through May 1, 2018	52.5			26.9
Total debt		$	1,165.6		$	816.8
Less current maturities		(76.9		)	(51.4		)
Long-term debt		$	1,088.7		$	765.4

Senior Secured Credit Facility

On June 25, 2014, the Company amended its senior secured credit facility, referred to as the Credit Facility, to increase aggregate borrowing commitments from $750 million to $1 billion, add the capability to borrow in Mexican pesos in addition to Canadian dollars, and increase the maximum amount that can be borrowed in alternate currencies to $200 million from $100 million. The amended Credit Facility, which matures on October 29, 2018, retains its accordion feature that permits the Company to increase revolving commitments and/or establish additional term loan tranches in an aggregate amount of up to $250 million. As of June 30, 2014 and December 31, 2013, the Company had outstanding revolving loans under the Credit Facility of $398.4 million and $53.0 million, respectively, which accrued interest at a weighted average rate of approximately 2.64% and 2.14% per annum, respectively. Letters of credit of approximately $132.8 million and $134.8 million were issued as of June 30, 2014 and December 31, 2013, respectively. The remaining borrowing capacity of $469.2 million and $562.1 million as of June 30, 2014 and December 31, 2013, respectively, was available for revolving loans, or up to $317.2 million and $315.2 million, respectively, of new letters of credit. Outstanding letters of credit mature at various dates and most have automatic renewal provisions, subject to prior notice of cancellation. As of June 30, 2014, interest on issued letters of credit accrued at 0.875% per annum for performance standby letters of credit and at 1.75% per annum for financial standby letters of credit. As of December 31, 2013, interest on issued letters of credit accrued at 0.75% per annum for performance standby letters of credit and at 1.5% per annum for financial standby letters of credit. The unused facility fee was 0.35% and 0.30% as of June 30, 2014 and December 31, 2013, respectively. The Credit Facility is guaranteed by certain subsidiaries of the Company.

For additional information regarding the Credit Facility, see Note 9 - Debt in the notes to the Company's consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2013 and the Company's Current Report on Form 8-K filed with the SEC on June 30, 2014.

Other Credit Facilities. During 2014, the Company entered into or assumed other credit facility arrangements to support the short-term working capital requirements of its foreign operations. As of June 30, 2014, the Company had maximum borrowing capacity totaling $70.3 million under these credit facilities, of which $11.2 million was available for letters of credit. Outstanding borrowings and issued letters of credit totaled $46.8 million and $10.5 million, respectively, as of June 30, 2014, and accrued interest at weighted average rates of 3.75% and 1.80%, respectively. The Company's other credit facilities, which have varying dates of maturity through March 3, 2015, are generally renewed on an annual basis. Outstanding borrowings under other credit facilities that are not renewed are repaid with borrowings under the Credit Facility. Accordingly, the carrying amounts of other credit facility borrowings are classified within long-term debt in the Company's condensed unaudited consolidated balance sheets as of June 30, 2014. The Company's other credit facilities are subject to customary provisions and covenants, and the Company was in compliance with all such provisions and covenants as of June 30, 2014.

Senior Convertible Notes

The 4.0% Convertible Notes, composed of $105.3 million principal amount of 2011 4.0% Notes and $9.6 million principal amount of 2009 4.0% Notes, matured and were converted in June 2014. The 2009 4.0% Notes were convertible at a rate of 63.4417 shares of MasTec common stock per $1,000 principal amount thereof, representing an initial conversion price of approximately $15.76 per share, which resulted in MasTec issuing an aggregate of 0.6 million shares of its common stock at maturity. The 2011 4.0% Notes were substantially identical to the 2009 4.0% Notes, except that the 2011 4.0% Notes had an optional physical (share), cash or combination settlement feature. In accordance with the Company's previously stated intent, it settled the principal amount of the 2011 4.0% Notes in cash, and the premium value in shares of common stock. Pursuant to the formula contained in the indenture governing the 2011 4.0% Notes, the Company issued 3.6 million shares of common stock to settle the premium value of such notes. The value of shares issued to settle the premium was $114.8 million, which was based on the closing price of the Company's common stock on the date the shares were issued. The 4.2 million aggregate shares issued in settlement of the 4.0% Convertible Notes were issued from the Company's treasury stock. See Note 13 - Equity.

Unamortized debt discount and financing costs associated with the 2011 4.25% Notes totaled $1.3 million as of June 30, 2014. Unamortized debt discount and financing costs associated with both the 2011 4.25% Notes and the 2011 4.0% Notes totaled $4.0 million as of December 31, 2013. The 4.0% Convertible Notes matured in June 2014 and the 4.25% Convertible Notes mature in December 2014. The Company settled the principal amount of the 2011 4.0% Notes with proceeds from the Credit Facility and the premium value in shares of common stock. The Company expects to settle the principal amount of its 2011 4.25% Notes on a long-term basis with proceeds from the Credit Facility, or through other sources of available funding, and the premium value in shares, and, therefore, has reflected the carrying amounts of these notes within long-term debt in the Company's condensed unaudited consolidated balance sheets.

For additional information regarding the Company's senior convertible notes, see Note 9 - Debt in the notes to the Company's consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2013.

Debt Guarantees and Covenants

The Company’s 4.875% Senior Notes, 2011 Convertible Notes and 2009 Convertible Notes are fully and unconditionally guaranteed on an unsecured, unsubordinated, joint and several basis by certain of the Company's existing and future 100%-owned direct and indirect domestic subsidiaries that are guarantors of the Credit Facility or other outstanding indebtedness. See Note 18 - Supplemental Guarantor Condensed Unaudited Consolidating Financial Information.

MasTec was in compliance with all provisions and covenants pertaining to its outstanding debt instruments as of June 30, 2014 and December 31, 2013.

Interest Expense, Net

The following table provides details of interest expense, net, for the periods indicated (in millions):



	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2014			2013			2014			2013
Interest expense:
Contractual and other interest expense	$	10.6		$	9.6		$	20.4		$	17.5
Accretion of senior convertible note discount	1.4			1.3			2.8			2.6
Amortization of deferred financing costs	0.9			1.0			1.9			2.0
Total interest expense	$	12.9		$	11.9		$	25.1		$	22.1
Interest income	(0.0		)	(0.1		)	(0.1		)	(0.2		)
Interest expense, net	$	12.9		$	11.8		$	25.0		$	21.9