Debt

9 Months Ended

Sep. 30, 2023

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


Description	Maturity Date	September 30, 2023		December 31, 2022
Senior credit facility:	November 1, 2026
Revolving loans		$	890.0	$	896.0
Term loan		343.4		350.0
4.50% Senior Notes	August 15, 2028	600.0		600.0
6.625% Senior Notes	August 15, 2029	283.5		281.2
2022 Term Loan Facility	October 7, 2025 and October 7, 2027	700.0		700.0
Finance lease and other obligations		402.8		414.5
Total debt obligations		$	3,219.7	$	3,241.7
Less unamortized deferred financing costs		(14.5)		(17.6)
Total debt, net of deferred financing costs		$	3,205.2	$	3,224.1
Current portion of long-term debt		175.3		171.9
Long-term debt		$	3,029.9	$	3,052.2

Senior Credit Facility

As of September 30, 2023, the Company’s senior unsecured credit facility (the “Credit Facility”) had aggregate borrowing commitments totaling approximately $2.25 billion, which amount is composed of $1.9 billion of revolving commitments and a term loan with an original principal amount of $350 million (the “Term Loan”). The Term Loan is subject to amortization in quarterly principal installments of approximately $2.2 million, which quarterly installments increase to approximately $4.4 million in March 2025 until maturity. Quarterly principal installments on the Term Loan are subject to adjustment, if applicable, for certain prepayments. As of September 30, 2023 and December 31, 2022, the fair values of the Credit Facility and Term Loan, as estimated based on an income approach utilizing significant unobservable Level 3 inputs including discount rate assumptions, approximated their carrying values.

Revolving loans accrued interest at weighted average rates of approximately 7.05% and 5.82% per annum as of September 30, 2023 and December 31, 2022, respectively. The Term Loan accrued interest at 7.04% and 5.80% as of September 30, 2023 and December 31, 2022, respectively. Letters of credit of approximately $65.0 million and $143.1 million were issued as of September 30, 2023 and December 31, 2022, respectively. As of September 30, 2023 and December 31, 2022, letter of credit fees accrued at 0.6875% and 0.5625% per annum, respectively, for performance standby letters of credit, and for financial standby letters of credit, accrued at 1.625% and 1.375% per annum, respectively. Outstanding letters of credit mature at various dates and most have automatic renewal provisions, subject to prior notice of cancellation. As of September 30, 2023 and December 31, 2022, availability for revolving loans totaled $945.0 million and $860.9 million, respectively, or up to $585.0 million and $506.9 million, respectively, for new letters of credit. There were no borrowings denominated in foreign currencies as of either September 30, 2023 or December 31, 2022. Revolving loan borrowing capacity included $300.0 million of availability in either Canadian dollars or Mexican pesos as of both September 30, 2023 and December 31, 2022. The unused facility fee as of September 30, 2023 and December 31, 2022 accrued at 0.225% and 0.200% per annum, respectively.

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. There were no outstanding borrowings under the Company’s other credit facilities as of either September 30, 2023 or December 31, 2022. Additionally, the Company has a separate credit facility, under which it may issue performance standby letters of credit. As of September 30, 2023 and December 31, 2022, letters of credit issued under this facility totaled $17.2 million and $23.6 million, respectively, which accrued fees at 0.90% and 0.75% per annum, respectively.

2022 Term Loan Facility

As of September 30, 2023, the Company has $700.0 million of unsecured term loans entered into in connection with the acquisition of IEA, composed of a three-year term loan of $400.0 million in principal amount (the “Three-Year Tranche”) maturing on October 7, 2025, and a five-year term loan of $300.0 million in principal amount (the “Five-Year Tranche”) maturing on October 7, 2027 (together, the “2022 Term Loan Facility”). The Three-Year Tranche is not subject to amortization. The Five-Year Tranche is subject to amortization in quarterly principal installments of approximately $3.75 million commencing on March 31, 2024, which installment will increase to $7.5 million on March 31, 2026 until maturity, subject to the application of certain prepayments. As of September 30, 2023, the Three- and Five-Year Tranches accrued interest at rates of 6.809% and 6.934%, respectively, and as of December 31, 2022, the Three- and Five-Year Tranches accrued interest at rates of 5.692% and 5.817%, respectively. As of September 30, 2023 and December 31, 2022, the fair value of the 2022 Term Loan Facility, as estimated based on an income approach, utilizing significant unobservable Level 3 inputs including discount rate assumptions, approximated its carrying value.

Debt Covenants

MasTec was in compliance with the provisions and covenants of its outstanding debt instruments as of both September 30, 2023 and December 31, 2022.

Additional Information

As of September 30, 2023 and December 31, 2022, accrued interest payable, which is recorded within other accrued expenses in the consolidated balance sheets, totaled $14.0 million and $24.8 million, respectively. For additional information pertaining to the Company’s debt instruments, see Note 7 - Debt in the Company’s 2022 Form 10-K.