CORAL GABLES, Fla., June 23 /PRNewswire-FirstCall/ -- MasTec, Inc. (NYSE:
MTZ) today announced that its underwriters have exercised their entire 15%
over-allotment related to the Company's recent senior convertible note
offering. MasTec closed the additional $15 million aggregate principal amount
of convertible notes on June 22.
The total $115,000,000 aggregate principal amount of senior convertible
notes, including the 15% over-allotment, have an interest rate of 4%, with
interest paid semi-annually, and mature on June 15, 2014, unless earlier
repurchased or converted. Proceeds from the additional $15 million aggregate
principal amount of new senior convertible notes, will be used for working
capital, possible acquisitions of assets and businesses and for general
corporate purposes.
The new senior convertible notes are convertible, under certain
circumstances, into shares of MasTec common stock at a conversion rate of
63.4417 shares of common stock per $1,000 principal amount of convertible
notes, equivalent to a conversion price of approximately $15.76 per share of
common stock, subject to adjustment in certain circumstances.
The transaction enhances MasTec's balance sheet and capital structure.
Current liquidity increased by approximately $55 million. Additionally, after
the new convertible note transaction, the Company's debt maturities and
interest rates are very favorable. MasTec has a $210 million bank credit
facility, currently priced at LIBOR plus 250 basis points, due in 2013, $115
million of 4% convertible notes due in 2014, and $150 million of 7.625% senior
notes due in 2017.
MasTec is a leading specialty contractor operating mainly throughout the
United States across a range of industries. The Company's core activities are
the building, installation, maintenance and upgrade of communication and
utility infrastructure systems.
Forward Looking Statements
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act. These statements are based on
management's current expectations and are subject to a number of risks,
uncertainties, and assumptions, including further or continued economic
downturns, reduced capital expenditures, reduced financing availability;
customer consolidation and technological and regulatory changes in the
industries we serve; market conditions, technical and regulatory changes in
our customers' industries; our ability to retain qualified personnel and key
management from acquired businesses, integrate acquired businesses within
expected timeframes and achieve the revenue, cost savings and earnings levels
from such acquisitions at or above the levels projected; the impact of the
American Recovery and Reinvestment Act of 2009 and any similar local or state
regulations affecting renewable energy, transmission, broadband and related
projects and expenditures; our ability to attract and retain qualified
managers and skilled employees; increases in fuel, maintenance, materials,
labor and other costs; liquidity issues and the impact of recent accounting
pronouncements related to the auction rate securities we hold; adverse
determinations on any claim, lawsuit or proceeding; the highly competitive
nature of our industry; our dependence on a limited number of customers; the
ability of our customers, including some of our largest customers, to
terminate or reduce the amount of work, or in some cases prices paid for
services, on short or not notice under our contracts; the adequacy of our
insurance, legal and other reserves and allowances for doubtful accounts; any
exposure related to our divested state Department of Transportation projects
and assets; the restrictions imposed by our credit facility, senior notes,
convertible notes and any future loans or securities; the outcome of our plans
for future operations, growth and services, including backlog and
acquisitions; any dilution or stock price volatility which shareholders may
experience in connection with shares we may issue as consideration for
earn-out obligations entered into, or as a result of conversions of
convertible securities issued, in connection with past or future acquisitions
or offerings; as well as other risks detailed in our filings with the
Securities and Exchange Commission. Actual results may differ significantly
from results expressed or implied in these statements. We do not undertake
any obligation to update forward-looking statements.
SOURCE MasTec, Inc.
-0- 06/23/2009
/CONTACT: J. Marc Lewis, Vice President-Investor Relations of MasTec,
Inc., +1-305-406-1815, +1-305-406-1886 fax, marc.lewis@mastec.com/
/Web Site: http://www.mastec.com /
(MTZ)
CO: MasTec, Inc.
ST: Florida
IN: CST RLT
SU: OFR
PR
-- FL35981 --
3881 06/23/2009 08:26 EDT http://www.prnewswire.com