Company: MTZ
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000015615-25-000052
Chunk: 109

Company: MASTEC INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 2
Chunk 109
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 principal installments of approximately $3.75 million, which installments commenced on March 31, 2024 and will increase to $7.5 million on March 31, 2026 

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until maturity, subject to the application of certain prepayments.  As of March 31, 2025 and December 31, 2024, the Five-Year Term Loan accrued interest at rates of 5.797% and 6.253%, respectively.  The fair value of the Five-Year Term Loan as of both March 31, 2025 and December 31, 2024, as estimated based on an income approach utilizing significant unobservable Level 3 inputs including discount rate assumptions, approximated its carrying value.Debt CovenantsMasTec was in compliance with the provisions and covenants of its outstanding debt instruments as of both March 31, 2025 and December 31, 2024.Additional InformationAs of March 31, 2025 and December 31, 2024, accrued interest payable, which is recorded within other accrued expenses in the consolidated balance sheets, totaled $16.2 million and $20.8 million, respectively.  For additional information pertaining to the Company’s debt instruments, see Note 7 – Debt in the Company’s 2024 Form 10-K.

Note 7 – Lease Obligations 

In the ordinary course of business, the Company enters into agreements that provide financing for machinery and equipment and for other of its facility, vehicle and equipment needs, including certain related party leases.  As of March 31, 2025, the Company’s leases have remaining lease terms of up to 14 years.  Lease agreements may contain renewal clauses, which, if elected, generally extend the term of the lease for 1 to 5 years for both equipment and facility leases.  Certain lease agreements may also contain options to purchase the leased property and/or options to terminate the lease.  In addition, lease agreements may include periodic adjustments to payment amounts for inflation or other variables, or may require payments for taxes, insurance, maintenance or other expenses, which are generally referred to as non-lease components.  The Company’s lease agreements do not contain significant residual value guarantees or material restrictive covenants.Finance LeasesThe gross amount of assets held under finance leases as of March 31, 2025 and December 31, 2024 totaled $751.0 million and $713.9 million, respectively.