By Rebecca Melvin
Concord, N.H., Sept. 10 – Quanta Services, Inc. detailed its $1.5 billion three-part offering of senior notes (Baa3/BBB-), which priced on Thursday, in a FWP filed with the Securities and Exchange Commission.
The company sold $500 million 0.95% senior notes due Oct. 1, 2024 at 99.946 to yield 0.968%, or a spread to Treasuries of 55 basis points. Spread talk had the notes coming in at the Treasuries plus 85 bps area.
A $500 million tranche of 2.35% senior notes due Jan. 15, 2032 priced at 99.939 to yield 2.356%, or a spread to Treasuries of 105 bps. Spread talk was in the 85 bps area.
And a $500 million tranche of 3.05% notes due Oct. 1, 2041 priced at 99.48 to yield 3.085% and a spread to Treasuries of 125 bps, which was tighter than spread talk in the 155 bps area.
The 2024 notes have a make-whole call at Treasuries plus 10 bps prior to Oct. 1, 2022 followed by a par call. The 2032 notes have a make-whole call at Treasuries plus 20 bps prior to Oct. 15, 2031, followed by a par call. And the 2041 notes have a make-whole call of Treasuries plus 20 bps prior to April 1, 2041, followed by a par call.
BofA Securities, Inc., Wells Fargo Securities LLC, J.P. Morgan Securities LLC, PNC Capital Markets LLC and Truist Securities Inc. are the joint bookrunning managers.
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.
| Issuer: | Quanta Services Inc.
|
| Issue: | Senior notes
|
| Amount: | $1.5 billion
|
| Bookrunners: | BofA Securities, Inc., Wells Fargo Securities LLC, J.P. Morgan Securities LLC, PNC Capital Markets LLC and Truist Securities Inc.
|
| Senior co-managers: | BBVA Securities Inc., BMO Capital Markets Corp., BNP Paribas Securities Corp., Citizens Capital Markets Inc. and MUFG
|
| Co-managers: | HSBC Securities (USA) Inc. and U.S. Bancorp Investments Inc.
|
| Trustee: | U.S. Bank NA
|
| Counsel to issuer: | Baker Botts LLP
|
| Change of control: | At 101
|
| Trade date: | Sept. 9
|
| Settlement date: | Sept. 23
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Distribution: | SEC registered
|
|
|
| 2024 notes
|
| Amount: | $500 million
|
| Maturity: | Oct. 1, 2024
|
| Coupon: | 0.95%
|
| Price: | 99.946
|
| Yield: | 0.968%
|
| Spread: | Treasuries plus 85 bps area
|
| Call features: | Make-whole call at Treasuries plus 10 bps prior to Oct. 1, 2022, then par call
|
| Price talk: | Treasuries plus 85 bps area
|
| Cusip: | 74762EAG7
|
|
|
| 2032 notes
|
| Amount: | $500 million
|
| Maturity: | Jan. 15, 2032
|
| Coupon: | 2.35%
|
| Price: | 99.939
|
| Yield: | 2.356%
|
| Spread: | Treasuries plus 105 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps prior to Oct. 15, 2031, then a par call
|
| Price talk: | Treasuries plus 85 bps area
|
| Cusip: | 74762EAH5
|
|
|
| 2041 notes
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| Amount: | $500 million
|
| Maturity: | Oct. 1, 2041
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| Coupon: | 3.05%
|
| Price: | 99.48
|
| Yield: | 3.085%
|
| Spread: | Treasuries plus 125 bps
|
| Price talk: | Treasuries plus 155 bps area
|
| Cusip: | 74762EAJ1
|
|
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