Note 8 - Debt

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



Description	Maturity Date	March 31, 2015			December 31, 2014
Senior secured credit facility:
Revolving loans	October 29, 2018	$	303.5		$	282.7
Term loan	November 21, 2019	250.0			250.0
4.875% senior notes	March 15, 2023	400.0			400.0
Other credit facilities	Varies	8.9			1.2
Capital lease obligations, weighted average interest rate of 2.8%	In installments through June 13, 2021	164.3			176.5
Notes payable, equipment, weighted average interest rate of 2.7%	In installments through May 1, 2018	26.2			24.4
Total debt		$	1,152.9		$	1,134.8
Less current maturities		(74.9		)	(73.6		)
Long-term debt		$	1,078.0		$	1,061.2

Senior Secured Credit Facility

The Company has a senior secured credit facility, referred to as the Credit Facility. Under the Credit Facility, aggregate borrowing commitments total $1.25 billion, composed of $1.0 billion of revolving commitments and a term loan in the aggregate principal amount of $250 million (the “Term Loan”). The Credit Facility provides the ability to borrow in either Mexican pesos or Canadian dollars, up to an aggregate equivalent amount of $200 million. Revolving commitments under the Credit Facility mature on October 29, 2018, and the Term Loan matures on November 21, 2019. The Term Loan is subject to amortization in quarterly principal installments of $3.1 million, subject to reduction as a result of the application of certain prepayments in accordance with the terms of the Credit Facility, commencing as of the quarter ending March 31, 2016 and continuing for each fiscal quarter thereafter. The maximum amount available for letters of credit under the Credit Facility is $450 million, of which up to $100 million can be denominated in either Mexican pesos or Canadian dollars. The Credit Facility also provides for swing line loans of up to $75 million. Under the Credit Facility, the Company has the option to increase revolving commitments and/or establish additional term loan tranches in an aggregate amount of $250 million. Borrowings under the Credit Facility are used for working capital requirements, capital expenditures and other corporate purposes, including equity, joint venture and other investments, the repurchase or prepayment of indebtedness and share repurchases. Deferred financing costs associated with the Credit Facility, including the Term Loan, totaled $6.4 million and $6.9 million, net of accumulated amortization as of March 31, 2015 and December 31, 2014, respectively.

As of March 31, 2015 and December 31, 2014, outstanding revolving loans under the Credit Facility accrued interest at weighted average rates of approximately 2.52% and 2.18% per annum, respectively, and the Term Loan accrued interest at a rate of 1.92% as of both March 31, 2015 and December 31, 2014. Letters of credit of approximately $153.2 million and $153.6 million were issued as of March 31, 2015 and December 31, 2014, respectively. As of both March 31, 2015 and December 31, 2014, letter of credit fees accrued at 0.875% per annum for performance standby letters of credit and at 1.75% per annum for financial standby 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 March 31, 2015 and December 31, 2014, borrowing capacity of $543.2 million and $563.7 million, respectively, was available for revolving loans, or up to $296.8 million and $296.4 million, respectively, for new letters of credit. The unused facility fee was 0.35% as of both March 31, 2015 and December 31, 2014. The Credit Facility is guaranteed by certain subsidiaries of the Company (the “Guarantor Subsidiaries”), and the obligations under the Credit Facility are secured by substantially all of the Company’s and the Guarantor Subsidiaries’ respective assets, subject to certain exceptions.

The Credit Facility is subject to certain provisions and covenants, as more fully described in Note 10 - Debt in the notes to the audited consolidated financial statements included in the Company’s 2014 Form 10-K, including a requirement to deliver periodic financial statements to the bank group under the Credit Facility. In connection with the delayed filing of the 2014 Form 10-K and this Quarterly Report on Form 10-Q (this “Form 10-Q”), the Company received consents from its bank group, which extended the delivery date requirements of the Company’s audited consolidated financial statements for the year ended December 31, 2014 and the condensed unaudited consolidated financial statements for the quarter ended March 31, 2015, as well as the delivery date of the Company’s condensed unaudited consolidated financial statements for the quarter ended June 30, 2015, should it be necessary, to September 1, 2015.

Other Credit Facilities. The Company has other credit facilities to support the working capital requirements of its foreign operations. Borrowings under these credit facilities, which have varying dates of maturity and are generally renewed on an annual basis, are primarily denominated in Canadian dollars. Maximum borrowing capacity totaled Canadian $45.0 million as of both March 31, 2015 and December 31, 2014, or approximately $35.5 million and $38.7 million, respectively. Outstanding borrowings totaled approximately $8.9 million and $1.2 million as of March 31, 2015 and December 31, 2014, respectively. Outstanding borrowings accrued interest at a weighted average rate of 4.0% as of both March 31, 2015 and December 31, 2014. Outstanding borrowings that are not renewed are repaid with borrowings under the Credit Facility. Accordingly, the carrying amounts of the Company’s borrowings under its other credit facilities are classified within long-term debt in the Company’s consolidated balance sheets. The Company’s other credit facilities are subject to customary provisions and covenants.

4.875% Senior Notes

The Company has $400 million outstanding principal amount of 4.875% Senior Notes, which are subject to certain provisions and covenants, as more fully described in Note 10 - Debt in the notes to the audited consolidated financial statements included in the Company’s 2014 Form 10-K, including a requirement to file with the Securities and Exchange Commission (the “SEC”) annual and quarterly reports. In connection with the delayed filing of the 2014 Form 10-K and this Form 10-Q, the Company received a consent from the holders of its 4.875% Senior Notes (the “Note Holders”) that extended these reporting requirements to August 1, 2015, subject to a 60-day cure period. With the filing of this Form 10-Q, the Company has met the reporting requirements with respect to its 4.875% Senior Notes. The Company paid a 25 basis point fee, or $0.9 million, to its Note Holders, and a 20 basis point fee, or $0.8 million, to the solicitation agent in connection with this consent. The Note Holders’ fee and solicitation agent’s fee were recorded within deferred financing costs and interest expense, respectively, in the second quarter of 2015.

Debt Guarantees and Covenants

The 4.875% Senior Notes are senior unsecured unsubordinated obligations and rank equal in right of payment with existing and future unsubordinated debt, and rank senior in right of payment to existing and future subordinated debt and 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 each guarantors of the Credit Facility or other outstanding indebtedness. See Note 17 - Supplemental Guarantor Condensed Unaudited Consolidating Financial Information.

MasTec was in compliance with the provisions and covenants contained in its outstanding debt instruments as of March 31, 2015 and December 31, 2014.

Additional Information

For detailed discussion and additional information pertaining to the Company’s debt instruments, see Note 10 - Debt in the notes to the Company’s audited consolidated financial statements included in its 2014 Form 10-K for the year ended December 31, 2014.

Interest Expense, Net

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



	For the Three Months Ended March 31,
	2015			2014
Interest expense:
Contractual and other interest expense	$	10.8		$	9.7
Accretion of senior convertible note discount	—			1.4
Amortization of deferred financing costs	0.6			0.9
Total interest expense	$	11.4		$	12.0
Interest income	(0.4		)	0.0
Interest expense, net	$	11.0		$	12.0

As of March 31, 2015 and December 31, 2014, accrued interest payable, which is recorded within other accrued expenses in the consolidated balance sheets, totaled $2.6 million and $7.4 million, respectively.