MasTec Secures $1.05B in Debt, Issues $475M in Equity to Fund $1.65B Acquisition of Superior Group

summarizeSummary

MasTec announced the acquisition of The Superior Group for $1.65 billion, financing it with a new $700 million term loan, a $350 million increase to its revolving credit facility, and the issuance of $475 million in common stock, resulting in approximately 1.5% dilution.

check_boxKey Events · M&A and Partnerships · MTZ

• Acquisition of The Superior Group

  MasTec entered into an agreement to acquire Electrical Specialists, Inc., d/b/a The Superior Group, a premier full-service electrical contractor, in a deal valued at $1.65 billion (as per recent news).

• New $700 Million Term Loan

  The company secured a new senior unsecured delayed draw term loan agreement for $700 million, consisting of $400 million in three-year commitments and $300 million in four-year commitments, to finance a portion of the acquisition.

• Increased Revolving Credit Facility

  MasTec amended its existing credit agreement, increasing its US dollar revolving borrowing commitments by $350 million to an aggregate of $2.25 billion, providing additional liquidity.

• Equity Issuance for Acquisition

  As partial consideration for the acquisition, MasTec will issue approximately 1,195,721 shares of common stock, valued at approximately $475 million, representing about 1.5% of outstanding shares post-issuance.

auto_awesomeAnalysis · MTZ · Real Estate & Construction

This filing details the financial structure of MasTec's significant acquisition of The Superior Group, a deal valued at $1.65 billion. The company is funding this strategic growth through a combination of new debt and equity. The new $700 million term loan and a $350 million increase to its existing revolving credit facility provide substantial capital, while the issuance of $475 million in common stock will result in approximately 1.5% dilution for existing shareholders. This is a major strategic move with significant financial implications.