In a move to extend the maturity date of its existing credit line, lower its costs, and expand its borrowing capabilities, Quanta Services (NYSE: PWR ) announced today that it has renegotiated its senior secured credit facility from its existing $700 million to $1.325 billion, with an option to go as high as $1.625 billion.
The new credit line, negotiated with a consortium of financial institutions led by Bank of America and Wells Fargo, now comes due Oct. 30, 2018, Quanta said in its statement, and includes "more favorable terms and rates." The new debt facility also offers Quanta the flexibility to borrow in two of its key international markets; Canada and Australia.
According to Quanta Services CFO Derrick Jensen, the expansion of its credit facility to as much as $1.625 billion, "provides Quanta greater financial flexibility to pursue large projects, acquisitions and other strategic opportunities as we execute on our growth initiatives."
As of June 30, Quanta Services had no long-term debt on its balance sheet.