MasTec (NYSE: MTZ) adds $650M in 5.85% notes maturing 2036
Rhea-AI Filing Summary
MasTec, Inc. completed a new debt financing, issuing $650.0 million aggregate principal amount of 5.850% senior unsecured notes due 2036. These 2036 Senior Notes were issued under MasTec’s existing 2009 base indenture, as supplemented by a twenty-second supplemental indenture with U.S. Bank Trust Company, National Association as trustee.
The notes are senior unsecured obligations of MasTec and rank equally with its other senior unsecured debt, but are effectively subordinated to any secured indebtedness and structurally subordinated to obligations of its subsidiaries, which do not guarantee the notes. The notes bear interest at 5.850% per year, payable on March 30 and September 30 beginning March 30, 2027, and mature on September 30, 2036. MasTec may redeem the notes, in whole or in part, at redemption prices specified in the indenture, which also includes customary events of default and remedies.
Positive
- None.
Negative
- None.
Filing Explained
The completed issuance creates a new ongoing obligation for MasTec: the
8-K Event Classification
3 items: 1.01, 2.03, 9.01
3 items
Item 1.01
Entry into a Material Definitive Agreement
Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 2.03
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
Financial
The company incurred a new significant debt or off-balance-sheet obligation.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Aggregate principal amount: $650.0 million
Interest rate: 5.850% per year
Maturity date: September 30, 2036
+2 more
5 metrics
Aggregate principal amount
$650.0 million
Principal amount of 5.850% senior unsecured notes due 2036
Interest rate
5.850% per year
Annual interest rate on 2036 Senior Notes
Maturity date
September 30, 2036
Maturity of MasTec’s 5.850% senior unsecured notes
First interest payment date
March 30, 2027
First scheduled semiannual interest payment on the 2036 Senior Notes
Interest payment dates
March 30 and September 30
Semiannual interest payment schedule each year for the 2036 Senior Notes
Key Terms
senior unsecured notes, Indenture, Supplemental Indenture, events of default, +1 more
5 terms
senior unsecured notes financial
"completed its public offering of 5.850% senior unsecured notes due 2036"
Senior unsecured notes are a type of loan a company borrows from investors, promising to pay back with interest. They are called "unsecured" because they aren’t backed by specific assets like buildings or equipment, but "senior" because they are paid back before other debts if the company gets into trouble. Investors see them as a relatively safer way for companies to raise money.
Indenture financial
"issued under an indenture dated as of June 5, 2009"
An indenture is a legal agreement between a company that borrows money by issuing bonds and the people who buy those bonds. It explains the rules the company must follow, like paying back the money and keeping certain financial promises. This document helps both sides understand their rights and responsibilities.
Supplemental Indenture financial
"as supplemented by a twenty-second supplemental indenture"
A supplemental indenture is a written amendment to the original bond agreement that changes specific terms of a debt contract, such as payment schedules, interest rates, collateral or covenant protections. Investors care because it alters the legal rights and risks tied to a security — like renegotiating a mortgage where the lender and borrower agree to new rules — and can affect a bond’s credit quality, yield and market value.
events of default financial
"The Indenture provides for customary events of default and remedies"
Events of default are specific breaches or failures listed in a loan, bond, or credit agreement that give lenders the right to act, such as demanding immediate repayment, raising interest rates, or taking secured assets. They matter to investors because triggering one is like setting off a financial alarm: it raises the chance of foreclosure, restructuring, or bankruptcy and can sharply reduce the value of a company’s stock or bonds and increase borrowing costs.
structurally subordinated financial
"are therefore structurally subordinated to all of the obligations"
A claim or security is structurally subordinated when it sits lower in the legal repayment order because it is issued by a subsidiary rather than the parent company, so its holders are paid only after the parent’s creditors and any creditors of the subsidiary’s parent entities are satisfied. Imagine a line for repayment: structurally subordinated investors stand further back in line, which affects the likelihood and amount they might recover if the company or group faces financial trouble. This matters to investors because it usually implies higher risk and can influence expected return, liquidity, and credit pricing.
FAQ
What new debt did MasTec (MTZ) issue according to the August 17, 2026 8-K?
MasTec issued $650.0 million of 5.850% senior unsecured notes due 2036. The notes were issued under its existing indenture structure with U.S. Bank Trust Company, National Association acting as trustee.
What is the interest rate and payment schedule on MasTec (MTZ) 2036 Senior Notes?
The 2036 Senior Notes bear interest at an annual rate of 5.850%. Interest is payable semiannually on March 30 and September 30 of each year, starting on March 30, 2027.
When do MasTec (MTZ) 5.850% senior unsecured notes mature?
MasTec’s 5.850% senior unsecured notes will mature on September 30, 2036. Until that date, the company will make semiannual interest payments under the terms of the indenture.
How are MasTec (MTZ) 2036 Senior Notes ranked in the capital structure?
The 2036 Senior Notes are senior unsecured obligations ranking equally with MasTec’s other senior unsecured indebtedness. They are effectively subordinated to secured debt and structurally subordinated to all obligations of subsidiaries, which do not guarantee the notes.
Can MasTec (MTZ) redeem the 2036 Senior Notes before maturity?
Yes. MasTec may redeem the 2036 Senior Notes in whole or in part at any time at redemption prices specified in the indenture. The specific redemption terms and pricing mechanics are defined in the governing indenture documents.
Who serves as trustee for MasTec (MTZ) 5.850% senior notes due 2036?
U.S. Bank Trust Company, National Association acts as trustee for the 2036 Senior Notes. It also serves as registrar and paying agent for these notes and for certain other MasTec senior note series.
AI-generated analysis. How Rhea-AI works. Not financial advice.
