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Debt Obligations
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
Debt Obligations
8. DEBT OBLIGATIONS:
Quanta’s long-term debt obligations consisted of the following (in thousands):
September 30, 2023December 31, 2022
0.950% Senior Notes due October 2024
$500,000 $500,000 
2.900% Senior Notes due October 2030
1,000,000 1,000,000 
2.350% Senior Notes due January 2032
500,000 500,000 
3.050% Senior Notes due October 2041
500,000 500,000 
Borrowings under senior credit facility (including Term Loan)965,764 786,910 
Borrowings under commercial paper program396,800 373,000 
Other long-term debt112,745 92,907 
Finance leases30,089 3,542 
Unamortized discount and financing costs(23,480)(26,432)
Total long-term debt obligations3,981,918 3,729,927 
Less — Current maturities of long-term debt44,570 37,495 
Total long-term debt obligations, net of current maturities$3,937,348 $3,692,432 
Senior Notes
The interest amounts due on Quanta’s senior notes on each payment date are set forth below (dollars in thousands):
Title of the NotesInterest AmountPayment DatesCommencement Date
0.950% Senior Notes due October 2024
$2,375 April 1 and October 1April 1, 2022
2.900% Senior Notes due October 2030
$14,500 April 1 and October 1April 1, 2021
2.350% Senior Notes due January 2032
$5,875 January 15 and July 15July 15, 2022
3.050% Senior Notes due October 2041
$7,625 April 1 and October 1April 1, 2022
The fair value of Quanta’s senior notes was $1.98 billion as of September 30, 2023, compared to a carrying value of $2.48 billion net of unamortized bond discount, underwriting discounts and deferred financing costs of $21.3 million. The fair value of the senior notes is based on the quoted market prices for the same issue, and the senior notes are categorized as Level 1 liabilities.
Senior Credit Facility
The credit agreement for Quanta’s senior credit facility (as amended, the credit agreement) provides for a $750.0 million term loan facility and aggregate revolving commitments of $2.64 billion, with a maturity date of October 8, 2026. Borrowings under the senior credit facility and the applicable interest rates were as follows (dollars in thousands):
Nine Months Ended
September 30,
20232022
Maximum amount outstanding$1,004,677 $1,684,783 
Average daily amount outstanding$928,318 $1,391,130 
Weighted-average interest rate6.39 %2.60 %
As of September 30, 2023, Quanta was in compliance with all of the financial covenants under the credit agreement.
Term Loan. As of September 30, 2023, Quanta had $735.9 million outstanding under its term loan facility. The carrying amount of the term loan under Quanta’s senior credit facility approximates fair value due to its variable interest rate.
Revolving Loans. As of September 30, 2023, Quanta had $229.8 million of outstanding revolving loans under the senior credit facility, all of which were denominated in Canadian dollars. The carrying amounts of the revolving borrowings under Quanta’s senior credit facility approximate fair value, as all revolving borrowings have a variable interest rate.
As of September 30, 2023, Quanta also had $311.1 million of letters of credit issued under the senior credit facility, of which $223.8 million were denominated in U.S. dollars and $87.3 million were denominated in currencies other than the U.S. dollar, primarily Australian and Canadian dollars. Additionally, available commitments for revolving loans under the senior credit facility must be maintained in order to provide credit support for notes issued under Quanta’s commercial paper program, and therefore such notes effectively reduce the available borrowing capacity under the senior credit facility.
As of September 30, 2023, $1.70 billion remained available under the senior credit facility for new revolving loans, letters of credit and support of the commercial paper program.
Deferred Financing Costs. As of September 30, 2023 and December 31, 2022, capitalized deferred financing costs, net of accumulated amortization, related to Quanta’s revolving loans under its senior credit facility and commercial paper program were $6.7 million and $8.3 million and are included in “Other assets, net” in the accompanying condensed consolidated balance sheets. Amortization of discount and deferred financing costs for all debt instruments is included in interest and other financing expenses and was $1.5 million and $2.0 million for the three months ended September 30, 2023 and 2022, and $4.4 million and $4.9 million for the nine months ended September 30, 2023 and 2022.
Commercial Paper Program
Quanta had $396.8 million of outstanding notes under its unsecured commercial paper program as of September 30, 2023, with a weighted average interest rate of 5.87% and a weighted average maturity of 24 days as of such date. The carrying amounts of the notes issued under Quanta’s commercial paper program approximate fair value.
Borrowings under the commercial paper program and the applicable interest rates were as follows (dollars in thousands):
Nine Months Ended
September 30,
2023
2022 (1)
Maximum amount outstanding$841,400 $426,250 
Average daily amount outstanding (1)
$624,476 $211,438 
Weighted-average interest rate5.79 %3.46 %
(1) The amounts in this column represent activity from August 23, 2022, the date Quanta’s commercial paper program commenced, through September 30, 2022.
Effective October 6, 2023, Quanta increased the maximum aggregate amount of its existing unsecured commercial paper program to $1.50 billion of notes outstanding at any time. Prior to the increase, the maximum aggregate amount of the program was $1.00 billion.
Additional Letters of Credit
As of September 30, 2023 Quanta had $226.2 million of surety-backed letters of credit issued outside of its senior credit facility, which were denominated in U.S. dollars.