PRESS RELEASE
Published on June 15, 2006
Exhibit 99.4
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PRESS RELEASE |
FOR IMMEDIATE RELEASE
06-13
06-13
Contacts:
|
James Haddox, CFO | Ken Dennard / ksdennard@drg-e.com | ||
Reba Reid | Lisa Elliott / lelliott@drg-e.com | |||
Quanta Services Inc. | DRG&E | |||
713-629-7600 | 713-529-6600 |
Quanta Services Obtains $300 Million Credit Facility
and Announces Results of Tender Offer
and Announces Results of Tender Offer
Houston June 15, 2006 Quanta Services, Inc. (NYSE: PWR) announced today that it has
entered into an amended and restated
five-year credit agreement with a syndicate of lenders led by
Bank of America, N.A. The $300.0 million senior secured revolving credit facility matures on June
12, 2011 and replaces Quantas previous $182.0 million credit facility. The amended credit
agreement contains customary financial and other covenants and provides improved flexibility for
certain matters including acquisitions, investments, capital expenditures, subordinated
indebtedness and debt prepayments.
We are extraordinarily pleased with the results of our refinancing efforts during the second
quarter of 2006, said James H. Haddox, CFO of Quanta Services, Inc. These refinancing activities
will provide Quanta with increased financial flexibility, lengthened debt maturities and lower
borrowing costs. Considering our substantial cash balance, the facility will be initially used for
letters of credit totaling $124.4 million, which will be priced at 1.625% of the face amount of the
letters of credit versus approximately 3.0% under the previous credit facility.
Quanta Services also announced today the expiration and final results of its cash tender offer
for any and all of its outstanding 4.0% Convertible Subordinated Notes due 2007. The tender offer
expired at midnight, New York City time, on June 13, 2006.
As of the expiration date of the tender offer, $139,227,000 principal amount of the notes,
representing approximately 80.7% of the notes outstanding, had been validly tendered pursuant to
the tender offer, all of which Quanta accepted for payment. Each holder who tendered notes on or
before the expiration date will receive $985 in cash for each $1,000 of principal amount of notes
tendered, plus accrued and unpaid interest up to, but not including, the date the notes are paid
pursuant to the offer. Banc of America Securities LLC, Credit Suisse Securities (USA) LLC and
J.P. Morgan Securities Inc. acted as Dealer Managers in connection with the tender offer.
As a result of amending the credit agreement and the repurchase of the convertible notes,
Quanta expects to record a charge in the second quarter of 2006 of approximately $3.2 million
related to the write-off of deferred financing costs. Partially offsetting this charge will be a
gain on early extinguishment of debt of approximately $1.6 million, net of the tender offer costs.
- more -
In conjunction with the restated credit agreement, Quanta Services will file a Form 8-K with
the Securities and Exchange Commission. This filing will also be available on the companys web
site at www.quantaservices.com.
Quanta Services, Inc.
Quanta Services, Inc. is a leading provider of specialized contracting services, delivering
end-to-end network solutions for electric power, gas, telecommunications and cable television
industries. The companys comprehensive services include designing, installing, repairing and
maintaining network infrastructure nationwide.
This press release contains forward-looking statements intended to qualify for the safe
harbor from liability established by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include, but are not limited to, statements relating to strategies,
expectations, intentions, plans, future events, performance, underlying assumptions, and other
statements that do not relate strictly to historical or current facts. Although Quantas management
believes that the expectations reflected in such forward-looking statements are reasonable, it can
give no assurance that such expectations will prove to have been correct. These statements can be
affected by inaccurate assumptions and by a variety of risks and uncertainties, including, among
others, general economic conditions, the companys reported results meeting the companys guidance
and the expectations of the market, and other risks, including risks related to Quantas operations
and financial condition, detailed in Quantas Annual Report on Form 10-K for the year ended
December 31, 2005, Quantas Quarterly Report on Form 10-Q for the quarter ended March 31, 2006 and
any other reports of the company filed with the Securities and Exchange Commission. Should one or
more of these risks materialize, or should underlying assumptions prove incorrect, actual results
may vary materially from those expressed or implied in any forward-looking statements. You are
cautioned not to place undue reliance on these forward-looking statements, which are current only
as of this date. Quanta does not undertake any obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise. For a discussion of
these risks, uncertainties and assumptions, investors are urged to refer to Quantas reports filed
with the Securities and Exchange Commission.
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