Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 1050

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1A
Chunk 1050
---
.970% and a Term Loan with a balance of $333 million and an interest rate of 6.220%.  The current year interest rates for outstanding revolving loans under our Credit Facility and Term Loan reflect basis point decreases of approximately 270 and 90, respectively, over the comparable period in 2023.  Outstanding debt under the $285.0 million Five-Year Term Loan bears interest, at our 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%. As of December 31, 2024, the Five-Year Term Loan accrued interest at a weighted average rate of 6.253%.

Our interest expense is affected by the overall interest rate environment.  Although the Federal Reserve has periodically lowered short-term interest rates since September 2024, longer-term rates remain elevated and the timing, direction and extent of any future interest rate changes remain uncertain.  The interest we are charged on our variable-rate debt will fluctuate as a result of changes in market interest.  Interest on our fixed-rate debt would not change.  We manage interest rate risk by maintaining a mix of fixed and variable rate debt obligations.  Our variable rate debt subjects us to risk from increases in prevailing interest rates.  An additional 100 basis point increase in the applicable interest rates under our Credit Facility and Five-Year Term Loan would have increased our interest expense by approximately $11 million for the year ended December 31, 2024.

As of December 31, 2024, our fixed interest rate debt primarily included $600.0 million aggregate principal amount of 4.500% Senior Notes, $550.0 million aggregate principal amount of 5.900% Senior Notes, $74.9 million aggregate principal amount of 6.625% Senior Notes and $297.9 million of finance lease obligations, which accrued interest at a weighted average interest rate of approximately 4.8%.  None of this debt 

49

subjects us to financial statement risk associated with changes in interest rates, but we may be subject to changes in interest rates if and when we refinance this debt at maturity or otherwise.

Foreign Currency Risk

Certain of our consolidated revenue and operating expenses are in foreign currencies.  Our foreign operations are primarily in Canada.  Revenue generated from foreign operations represented approximately 1% of our total revenue for the year ended December