Debt

9 Months Ended

Sep. 30, 2021

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


Description	Maturity Date	September 30, 2021		December 31, 2020
Senior secured credit facility:	September 19, 2024
Revolving loans		$	225.9	$	32.7
Term loan		390.0		397.5
4.50% Senior Notes	August 15, 2028	600.0		600.0
Finance lease and other obligations		305.8		288.5
Total debt obligations		$	1,521.7	$	1,318.7
Less unamortized deferred financing costs		(13.6)		(16.0)
Total debt, net of deferred financing costs		$	1,508.1	$	1,302.7
Current portion of long-term debt		161.0		145.1
Long-term debt		$	1,347.1	$	1,157.6

Senior Secured Credit Facility

As of September 30, 2021, the Company’s senior secured credit facility (the “Credit Facility”) has aggregate borrowing commitments totaling approximately $1.75 billion, which amount is composed of $1.35 billion of revolving commitments and a term loan with an original principal amount of $400 million. The term loan is subject to amortization in quarterly principal installments of $2.5 million, which commenced in December 2020. Quarterly principal installments on the term loan are subject to adjustment, if applicable, for certain prepayments.

As of September 30, 2021 and December 31, 2020, outstanding revolving loans, which included $26 million and $33 million, respectively, of borrowings denominated in foreign currencies, accrued interest at weighted average rates of approximately 1.38% and 1.87% per annum, respectively. The term loan accrued interest at rates of 1.33% and 1.40% as of September 30, 2021 and December 31, 2020, respectively. Letters of credit of approximately $108.7 million and $133.6 million were issued as of September 30, 2021 and December 31, 2020, respectively. As of both September 30, 2021 and December 31, 2020, letter of credit fees accrued at 0.375% per annum for performance standby letters of credit and at 1.25% 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 September 30, 2021 and December 31, 2020, availability for revolving loans totaled $1.0 billion and $1.2 billion, respectively, or up to $546.2 million and $516.4 million, respectively, for new letters of credit. Revolving loan borrowing capacity included $274.1 million and $267.3 million of availability in either Canadian dollars or Mexican pesos as of September 30, 2021 and December 31, 2020, respectively. The unused facility fee as of both September 30, 2021 and December 31, 2020 accrued at a rate of 0.20% per annum.

The Credit Facility is guaranteed by certain subsidiaries of the Company (the “Guarantor Subsidiaries”) and obligations under the Credit Facility are secured by substantially all of the Company’s and the Guarantor Subsidiaries’ respective assets, subject to certain exceptions.

Other Credit Facilities. The Company has other credit facilities that support the working capital requirements of its foreign operations and certain letter of credit issuances. As of September 30, 2021, outstanding borrowings under the Company’s other credit facilities totaled approximately $4.0 million and accrued interest at a weighted average rate of 3.2%. As of December 31, 2020, there were no outstanding borrowings. Additionally, the Company has a separate credit facility, under which it may issue up to $50.0 million of performance standby letters of credit. As of September 30, 2021 and December 31, 2020, letters of credit issued under this facility totaled $26.2 million and $18.2 million, respectively, and accrued fees at 0.40% and 0.50% per annum, respectively. The Company’s other credit facilities are subject to customary provisions and covenants.

Debt Guarantees and Covenants

The 4.50% Senior Notes are fully and unconditionally guaranteed on a senior unsecured, joint and several basis by the Company’s wholly-owned domestic restricted subsidiaries that guarantee its existing credit facilities, subject to certain exceptions. MasTec was in compliance with the provisions and covenants of its outstanding debt instruments as of both September 30, 2021 and December 31, 2020.

Additional Information

As of September 30, 2021 and December 31, 2020, accrued interest payable, which is recorded within other accrued expenses in the consolidated balance sheets, totaled $5.0 million and $12.4 million, respectively. In the third quarter of 2020, the Company redeemed its previously outstanding $400 million 4.875% Senior Notes due in 2023 and recognized a pre-tax debt extinguishment loss of approximately $5.6 million, including $3.3 million of early repayment premiums and $2.3 million of unamortized deferred financing costs. For additional information pertaining to the Company’s debt instruments, see Note 7 - Debt in the Company’s 2020 Form 10-K.

Subsequent Event

On November 1, 2021, the Company refunded and replaced its Credit Facility with an unsecured replacement credit facility (the “replacement Credit Facility”), which matures on November 1, 2026, and has total commitments of $2.0 billion, which amount is composed of $1.65 billion of revolving commitments and a term loan with an original principal amount of $350 million. The rates applicable to commitments, borrowings and letters of credit were also modified in connection with the replacement Credit Facility. The replacement Credit Facility is guaranteed by certain of the Company’s subsidiaries, and the obligations under the replacement Credit Facility are not secured. The Company incurred approximately $5 million of financing costs as of November 1, 2021 in connection with the replacement of its Credit Facility, which costs will be amortized over the remaining term of the replacement Credit Facility.