Debt

6 Months Ended

Jun. 30, 2022

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


Description	Maturity Date	June 30, 2022		December 31, 2021
Senior credit facility:	November 1, 2026
Revolving loans		$	985.5	$	772.3
Term loan		350.0		350.0
4.50% Senior Notes	August 15, 2028	600.0		600.0
Finance lease and other obligations		351.4		310.3
Total debt obligations		$	2,286.9	$	2,032.6
Less unamortized deferred financing costs		(16.8)		(18.5)
Total debt, net of deferred financing costs		$	2,270.1	$	2,014.1
Current portion of long-term debt		152.0		137.9
Long-term debt		$	2,118.1	$	1,876.2

Senior Credit Facility

As of June 30, 2022, the Company’s senior unsecured credit facility (the “Credit Facility”) had aggregate borrowing commitments totaling approximately $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 “Term Loan”). The Term Loan is subject to amortization in quarterly principal installments of approximately $2.2 million commencing in March 2023, which quarterly installments increase to approximately $4.0 million in March 2025 until maturity. Quarterly principal installments on the Term Loan are subject to adjustment, if applicable, for certain prepayments.

As of June 30, 2022 and December 31, 2021, outstanding revolving loans, which included $0.5 million and $32.3 million, respectively, of borrowings denominated in foreign currencies, accrued interest at weighted average rates of approximately 2.61% and 2.32% per annum, respectively. The Term Loan accrued interest at rates of 2.92% and 1.35% as of June 30, 2022 and December 31, 2021, respectively. Letters of credit of approximately $197.5 million and $166.3 million were issued as of June 30, 2022 and December 31, 2021, respectively. As of both June 30, 2022 and December 31, 2021, letter of credit fees accrued at 0.4375% 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 June 30, 2022 and December 31, 2021, availability for revolving loans totaled $466.9 million and $711.5 million, respectively, or up to $452.5 million and $483.7 million, respectively, for new letters of credit. Revolving loan borrowing capacity included $299.5 million and $267.7 million of availability in either Canadian dollars or Mexican pesos as of June 30, 2022 and December 31, 2021, respectively. The unused facility fee as of both June 30, 2022 and December 31, 2021 accrued at a rate of 0.175% per annum.

The Credit Facility is guaranteed by certain subsidiaries of the Company and the obligations under the Credit Facility are not secured.

Other Credit Facilities. The Company has other credit facilities that support: (i) the working capital requirements of its foreign operations and (ii) certain letter of credit issuances. There were no outstanding borrowings under the Company’s other credit facilities as of June 30, 2022 or December 31, 2021. Additionally, the Company has a separate credit facility, under which it may issue performance standby letters of credit. As of June 30, 2022 and December 31, 2021, letters of credit issued under this facility totaled $18.3 million and $22.2 million, respectively, and accrued fees at 0.50% and 0.40% 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 certain of the Company’s wholly-owned domestic restricted subsidiaries that guarantee its existing credit facilities. MasTec was in compliance with the provisions and covenants of its outstanding debt instruments as of both June 30, 2022 and December 31, 2021.

Additional Information

As of June 30, 2022 and December 31, 2021, accrued interest payable, which is recorded within other accrued expenses in the consolidated balance sheets, totaled $13.1 million and $11.7 million, respectively. For additional information pertaining to the Company’s debt instruments, see Note 7 - Debt in the Company’s 2021 Form 10-K.

Bridge Facility and Term Loan Commitments

In July 2022, MasTec announced that it entered into an agreement to acquire all of the outstanding shares of IEA. This acquisition will be funded with cash on hand, borrowings under the Company’s senior secured credit facility and additional debt financing. The Company intends to finance at least a portion of the cash required in connection with this transaction with a bridge facility, pursuant to which certain lenders have committed to provide a 364-day senior unsecured bridge term loan facility in an aggregate principal amount of up to $1 billion, or, as an alternative to the bridge facility, with the proceeds from the Term Facilities (as defined below), for which the Company has also received bank commitments.

Certain lenders have agreed to use commercially reasonable efforts to provide (i) a three-year senior unsecured term loan facility in an aggregate principal amount of $500 million and (ii) a five-year senior unsecured term loan facility in an aggregate principal amount of $500 million (together, the “Term Facilities”). Additionally, the Company may continue to evaluate alternative financing structures and amounts based on its needs and capital market conditions. The availability of borrowings under the above described facilities is subject to the satisfaction of certain customary conditions, including execution of definitive documentation and the substantially concurrent consummation of the IEA acquisition. Through August 1, 2022, MasTec has incurred approximately $3 million of financing costs in connection with these financing commitments, which amounts will be recorded as deferred financing costs and amortized to interest expense over the period of the related instruments. See Note 3 – Acquisitions, Goodwill and Other Intangible Assets for additional information related to the IEA transaction.