Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 634

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1
Chunk 634
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ization in quarterly 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, until maturity, subject to the application of certain prepayments.  The fair value of the Five-Year Term Loan as of both December 31, 2024 and 2023, as estimated based on an income approach utilizing significant unobservable Level 3 inputs including discount rate assumptions, approximated its carrying value.The Five-Year Term Loan bears interest, at the Company’s option, at a rate equal to either (a) Term SOFR plus a margin of  1.250% to 1.625%, or (b) a Base Rate, plus a margin of 0.250% to 0.625%.  The Base Rate equals the highest of (i) the Federal Funds Rate, as defined in the Five-Year Term Loan Facility, plus 0.50%, (ii) Bank of America’s prime rate, and (iii) Term SOFR plus 1.00%.  The applicable margin is based on the Company’s Consolidated Leverage Ratio and Debt Rating, each as defined in the Five-Year Term Loan Facility, as of the then most recent fiscal quarter.  As of December 31, 2024 and 2023, the Five-Year Term Loan accrued interest at rates of 6.253% and 6.958%, respectively.The obligations under the Five-Year Term Loan are unsecured and are not guaranteed by any of the Company or its subsidiaries.  The Five-Year Term Loan requires the Company to maintain a Consolidated Leverage Ratio, as defined in the Five-Year Term Loan, of not more than 3.50 as of the end of any fiscal quarter, subject to the Acquisition Adjustment described below.  The Five-Year Term Loan also requires the Company to maintain a Consolidated Interest Coverage Ratio, as defined in the Amended Credit Facility, of at least 3.00.  The Five-Year Term Loan provides that, for purposes of calculating the Consolidated Leverage Ratio, funded indebtedness excludes undrawn standby performance letters of credit included in the calculation of Consolidated Funded Indebtedness, as defined in the Five-Year Term Loan.  Notwithstanding the terms discussed above, subject to certain conditions, if a permitted acquisition or series of permitted acquisitions having consideration exceeding $100 million occurs during a fiscal quarter, the Consolidated Leverage Ratio may be temporarily increased