Subsequent Event |
9 Months Ended |
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Sep. 30, 2018 | |
| Subsequent Events [Abstract] | |
| Subsequent Event | SUBSEQUENT EVENT: Senior Secured Credit Facility Amendment
On October 10, 2018, Quanta entered into an amendment to the amended and restated credit agreement for its senior secured credit facility, which, among other things, (i) increased the amount of revolving commitments thereunder by $175.0 million, resulting in an aggregate revolving credit facility of up to $1.99 billion, and (ii) provided for a new term loan facility with total term loan commitments of $600.0 million. After giving effect to the amendment, the aggregate amount of the credit facilities provided for under the credit agreement is $2.59 billion. In addition, subject to the conditions specified in the credit agreement, Quanta has the option to increase such amount, in the form of revolving loan or term loan commitments, by up to an additional $400.0 million, from time to time, upon receipt of additional commitments from new or existing lenders. Both the revolving credit facility and the term loan facility mature on October 31, 2022.
The amendment also increased the amount of the revolving credit facility that may be used for swing line loans in Australian dollars from $30.0 million to $50.0 million and increased the threshold amount for cross-defaults to certain debt instruments and for certain other purposes from $100.0 million to $150.0 million.
On October 10, 2018, Quanta borrowed the full amount of the term loan facility and used all of such proceeds to repay outstanding borrowings under the revolving credit facility. Pursuant to the amendment, amounts borrowed under the term loan facility will bear interest, at Quanta’s option, at a rate equal to either (i) the Eurocurrency Rate plus 1.125% to 1.875%, as determined based on Quanta’s Consolidated Leverage Ratio, or (ii) the Base Rate plus 0.125% to 1.000%, as determined based on Quanta’s Consolidated Leverage Ratio. Quanta is required to make quarterly amortization payments of $7.5 million on the last business day of each March, June, September and December, beginning in December 2018. The aggregate principal amount of all term loans outstanding on the maturity date must also be paid on such date; however, Quanta may voluntarily prepay these term loan borrowings from time to time, in whole or in part, without premium or penalty.
For additional information on the credit agreement, see Debt Obligations - Senior Secured Credit Facility in Note 7.
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