MasTec Locks In $650M Senior Notes at 5.85% to Refinance Acquisition Debt
MTZ sits 56% above its 52-week low of $167.66.
Summary
MasTec priced $650 million of 5.85% senior notes due 2036, using the proceeds to refinance its $600 million term loan. The fixed-rate issuance replaces floating-rate debt, reducing interest-rate risk and extending maturity.
Key Events · Financing and Capital Events · MTZ
-
$650M Senior Notes Priced
MasTec priced $650 million of 5.85% senior notes due 2036 at 99.656% of par, yielding 5.894% — a 122 bps spread over the 10-year Treasury.
-
Proceeds to Refinance Term Loan
Net proceeds of approximately $643.5 million will be used to repay the $600 million term loan facility incurred for the Superior Group acquisition, replacing floating-rate debt with fixed-rate bonds.
-
Investment-Grade Ratings
The notes received Baa3 (Moody's), BBB- (S&P), and BBB- (Fitch) ratings, reflecting stable credit quality and market access.
-
Settlement and Maturity
The notes settle on August 17, 2026 (T+7) and mature on September 30, 2036, with semi-annual interest payments starting March 30, 2027.
Analysis · MTZ · Real Estate & Construction
MasTec has finalized terms on a $650 million senior note offering, pricing the 10-year debt at 5.85% — a 122 basis-point spread over Treasuries. The deal will generate roughly $643.5 million in net proceeds, earmarked to refinance its $600 million term loan from the Superior Group acquisition. This is a straightforward balance-sheet cleanup: swapping floating-rate bank debt for fixed-rate bonds at a modest premium, which reduces refinancing risk and locks in long-term funding costs. The investment-grade ratings (Baa3/BBB-) and the tight spread suggest credit markets are comfortable with MasTec's leverage following the $1.65 billion acquisition. No equity dilution — this is pure debt management.
At the time of this filing, MTZ was trading at $261.00 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $20.8B. The 52-week trading range was $167.66 to $441.43. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.