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Debt Obligations | 9 Months Ended
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Sep. 30, 2024
Debt Disclosure [Abstract] |
Debt Obligations | 8. DEBT OBLIGATIONS: Quanta’s long-term debt obligations consisted of the following (in thousands):
|  | September 30, 2024 |  | December 31, 2023
0.950% Senior Notes due October 2024 |  | $ | 500,000 |  |  | $ | 500,000 |
4.750% Senior Notes due August 2027 |  | 600,000 |  |  | — |
2.900% Senior Notes due October 2030 |  | 1,000,000 |  |  | 1,000,000 |
2.350% Senior Notes due January 2032 |  | 500,000 |  |  | 500,000 |
5.250% Senior Notes due August 2034 |  | 650,000 |  |  | — |
3.050% Senior Notes due October 2041 |  | 500,000 |  |  | 500,000 |
Borrowings under senior credit facility (including Term Loan) |  | 776,174 |  |  | 867,137 |
Borrowings under commercial paper program |  | — |  |  | 705,900 |
Lease financing transactions |  | 144,083 |  |  | 102,955 |
Other long-term debt |  | 5,277 |  |  | 6,279 |
Finance leases |  | 45,321 |  |  | 39,577 |
Unamortized discount and financing costs |  | (32,774) |  |  | (23,142) |
Total long-term debt obligations |  | 4,688,081 |  |  | 4,198,706 |
Less — Current maturities of long-term debt |  | 556,238 |  |  | 535,202 |
Total long-term debt obligations, net of current maturities |  | $ | 4,131,843 |  |  | $ | 3,663,504 |
Senior Notes Recent Issuance of Senior Notes. In August 2024, Quanta issued $1.25 billion aggregate principal amount of senior notes consisting of $600.0 million aggregate principal amount of 4.750% senior notes due August 2027 (the 2027 notes) and $650.0 million aggregate principal amount of 5.250% senior notes due August 2034 (the 2034 notes). The cumulative proceeds from the public offering of the 2027 notes and 2034 notes were $1.24 billion, net of the original issue discount, underwriting discounts and deferred financing costs, which were used to repay certain short-term and commercial paper borrowings that were utilized to acquire CEI. As further specified by the terms of the senior notes and the indenture and supplemental indentures governing the senior notes (collectively, the Indenture), Quanta may redeem (i) all or a portion of the 2027 notes before the date that is one month prior to their maturity date, or (ii) all or a portion of the 2034 notes before the date that is three months prior to their maturity date, at a redemption price equal to the greater of (a) 100% of the principal amount of the senior notes to be redeemed or (b) the sum of the present values of the remaining scheduled payments of principal and interest (as discounted to the redemption date), on the senior notes to be redeemed that would be due if such senior notes matured on the applicable date described above less interest accrued to the date of redemption plus, in either case, accrued and unpaid interest thereon to (but excluding) the redemption date. Quanta may redeem (i) all or a portion of the 2027 notes within one month of the maturity date, or (ii) all or a portion of 2034 notes within three months of the maturity date, at a redemption price equal to 100% of the principal amount of the senior notes being redeemed plus accrued and unpaid interest thereon to (but excluding) the redemption date. Upon the occurrence of a Change of Control Triggering Event (as defined in the Indenture), unless Quanta has exercised its right to redeem the applicable series of 2027 notes and 2034 notes in full by giving irrevocable notice to the trustee, each holder of such 2027 notes and 2034 notes will have the right to require Quanta to purchase all or a portion of such holder’s 2027 notes and 2034 notes at a purchase price equal to 101% of the principal amount thereof plus accrued and unpaid interest. The Indenture contains covenants that, among other things, limit Quanta’s ability to incur liens securing certain indebtedness, to engage in certain sale and leaseback transactions with respect to certain properties and to sell all or substantially all of Quanta’s assets or merge or consolidate with or into other companies. The Indenture also contains customary events of default. All 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 Notes |  | Interest Amount |  | Payment Dates |  | Commencement Date
0.950% Senior Notes due October 2024 (1) |  | $ | 2,375 |  |  | April 1 and October 1 |  | April 1, 2022
4.750% Senior Notes due August 2027 |  | $ | 14,250 |  |  | February 9 and August 9 |  | February 9, 2025
2.900% Senior Notes due October 2030 |  | $ | 14,500 |  |  | April 1 and October 1 |  | April 1, 2021
2.350% Senior Notes due January 2032 |  | $ | 5,875 |  |  | January 15 and July 15 |  | July 15, 2022
5.250% Senior Notes due August 2034 |  | $ | 17,063 |  |  | February 9 and August 9 |  | February 9, 2025
3.050% Senior Notes due October 2041 |  | $ | 7,625 |  |  | April 1 and October 1 |  | April 1, 2022
(1) Quanta repaid the $500.0 million aggregate principal amount of the 0.950% senior notes due October 2024 on October 1, 2024, and therefore no interest payments will be made after such date with respect to such notes. The fair value of Quanta’s senior notes was $3.50 billion as of September 30, 2024, compared to a carrying value of $3.72 billion net of unamortized bond discount, underwriting discounts and deferred financing costs of $31.8 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 As of September 30, 2024, the credit agreement for Quanta’s senior credit facility provided for a $750.0 million term loan facility with a maturity date of October 8, 2026 and aggregate revolving commitments of $2.80 billion, with a maturity date of July 31, 2029. Borrowings under the senior credit facility and the applicable interest rates were as follows (dollars in thousands):
|  | Three Months Ended |  | Nine Months Ended
|  | September 30, |  | September 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
Maximum amount outstanding |  | $ | 1,262,736 |  |  | $ | 1,004,677 |  |  | $ | 1,262,736 |  |  | $ | 1,004,677 |
Average daily amount outstanding |  | $ | 978,939 |  |  | $ | 965,022 |  |  | $ | 897,753 |  |  | $ | 928,318 |
Weighted-average interest rate |  | 6.71 | % |  | 6.70 | % |  | 6.75 | % |  | 6.39 | %
As of September 30, 2024, Quanta was in compliance with all of the financial covenants under the credit agreement. On July 31, 2024, Quanta entered into an amendment to the credit agreement for its senior credit facility (the Amended Credit Agreement) that, among other things, (i) increased the aggregate commitments for revolving loans from $2.64 billion to $2.80 billion and (ii) extended the maturity date for revolving loans from October 8, 2026 to July 31, 2029. The amendment also (i) increased the limit on surety-backed letters of credit issued separate from the senior credit facility to $500.0 million at any one time outstanding and (ii) increased the cross-default threshold for other debt instruments to those exceeding $400.0 million in borrowings or availability. Additionally, on June 10, 2024, the senior credit facility was amended to establish Term CORRA (as defined in the Amended Credit Agreement) as the benchmark rate for borrowings denominated in Canadian dollars, in replacement of the CDOR Rate (as defined therein prior to giving effect to the amendment). Term Loan. As of September 30, 2024, Quanta had $717.2 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, 2024, Quanta had $59.0 million of outstanding revolving loans under the senior credit facility, $30.3 million of which were denominated in Canadian dollars and $28.7 million of which were denominated in U.S. 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, 2024, Quanta also had $226.1 million of letters of credit issued under the senior credit facility, of which $79.2 million were denominated in U.S. dollars and $146.9 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, 2024, $2.51 billion remained available under the senior credit facility for new revolving loans, letters of credit and support of the commercial paper program. Commercial Paper Program As of September 30, 2024, Quanta had no outstanding unsecured notes under its commercial paper program. Borrowings under the commercial paper program and the applicable interest rates were as follows (dollars in thousands):
|  | Three Months Ended |  | Nine Months Ended
|  | September 30, |  | September 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
Maximum amount outstanding |  | $ | 1,415,000 |  |  | $ | 810,500 |  |  | $ | 1,415,000 |  |  | $ | 841,400 |
Average daily amount outstanding |  | $ | 456,212 |  |  | $ | 627,877 |  |  | $ | 325,171 |  |  | $ | 624,476 |
Weighted-average interest rate |  | 5.15 | % |  | 5.95 | % |  | 5.50 | % |  | 5.79 | %
On July 17, 2024, Quanta utilized approximately $1.20 billion of borrowings under its commercial paper program, $400.0 million of borrowings under an additional term loan described below, and cash on hand, primarily to finance the cash portion of the acquisition of CEI and pay certain related costs and expenses and working capital requirements. As described above, the proceeds from the issuance of the 2027 notes and the 2034 notes were utilized to repay the $400.0 million additional term loan and certain commercial paper borrowings. Additional Term Loan In July 2024, Quanta entered into, and borrowed the full amount available under, a $400.0 million 90-day term loan facility outside of the senior credit facility for the purpose of financing a portion of the acquisition of CEI. Quanta voluntarily prepaid the term loan borrowings, in whole without premium or penalty, in August 2024 with proceeds from the issuance of the 2027 notes and 2034 notes. The term loan facility bore interest at a rate equal to the Term SOFR (as defined in the credit agreement) plus 1.375%. Additional Letters of Credit As of September 30, 2024, Quanta had $572.3 million of letters of credit issued outside of its senior credit facility, which were denominated in U.S. dollars.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 2: 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