Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 1628

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1C
Chunk 1628
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 Credit Facility.Outstanding revolving loans and the Term Loan under the Credit Facility bear interest, at the Company’s option, at a rate equal to either (a) Term SOFR, as defined in the Credit Facility, plus a margin of 1.125% to 1.625%, or (b) a Base Rate, as defined in the Credit Facility, plus a margin of 0.125% to 0.625%.  The Base Rate equals the highest of (i) the Federal Funds Rate, as defined in the Credit Facility, plus 0.50%, (ii) Bank of America’s prime rate, and (iii) Term SOFR plus 1.00%.  Financial standby letters of credit and commercial letters of credit issued under the Credit Facility are subject to a letter of credit fee ranging from 1.125% to 1.625%, and performance standby letters of credit issued under the Credit Facility are subject to a letter of credit fee ranging from 0.3125% to 0.6875%.  The Company must also pay a commitment fee to the lenders ranging from 0.150% to 0.225% on any unused availability under the Credit Facility.  In each of the foregoing cases, the applicable margin or fee is based on the Company’s Consolidated Leverage Ratio, as defined in the Credit Facility, as of the then most recent fiscal quarter.   On December 9, 2024, the Company entered into the Second Amendment to its Credit Facility, which among other things, replaced the interest rate benchmark for borrowings denominated in Canadian dollars from the Canadian Dollar Offered Rate (“CDOR”) to a rate based on the Canadian Overnight Repo Rate Average (“CORRA”).Revolving loans accrued interest at weighted average rates of approximately 4.97% and 7.71% per annum as of December 31, 2024 and 2023, respectively.  The Term Loan accrued interest at rates of 6.22% and 7.08% as of December 31, 2024 and 2023, respectively.  Letters of credit of approximately $64.3 million and $64.9 million were issued as of December 31, 2024 and 2023, respectively.  As of December 31, 2024 and 2023, letter of credit fees accrued at 0.5625% and 0.6875% per annum, respectively, for performance standby letters of credit, and