Quanta Services prepares three-part offering of fixed-rate notes; talk emerges

By Cristal Cody

Chicago, Sept. 9 – Quanta Services, Inc. is preparing to offer three tranches of fixed-rate notes (BBB-), according to a 424B5 filing with the Securities and Exchange Commission on Thursday morning.

A market source filled in with details. The company is readying:

• Three-year notes with a spread expected in the Treasuries plus 85 basis points area;

• A series due Jan. 15, 2032 with talk in the Treasuries plus 85 bps area; and

• A 20-year tranche with talk in the Treasuries plus 155 bps area.

All three series will have make-whole call options.

The company must offer to repurchase the notes at 101 if there is a change-of-control triggering event.

BofA Securities, Inc. and Wells Fargo Securities LLC are the bookrunners.

U.S. Bank NA is the trustee. Baker Botts LLP is advising the issuer as counsel.

Proceeds will be used with borrowings on Quanta’s term loans and revolver, and possibly cash on hand, to fund the purchase of Blattner Holding Co.

There will be a special mandatory redemption provision if the acquisition is not completed.

Quanta Services is a Houston-based specialized contracting services company.

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