(Source: PRNewswire)
CORAL GABLES, Fla., June 8 /PRNewswire-FirstCall/ -- MasTec, Inc. (NYSE: MTZ) today announced that it has closed its $100 million convertible note offering and the secondary offering of shares of common stock for certain selling shareholders. In addition, MasTec announced today that the underwriters have fully exercised their over-allotment option in the common stock offering which is scheduled to close on June 10, 2009. Including the over-allotment option, 5.175 million shares will be sold by the selling shareholders, Jon Wanzek, President of Wanzek Construction, Inc. ("Wanzek Construction"), and his affiliates. Mr. Wanzek and his affiliates received 7.5 million shares of MasTec common stock in conjunction with MasTec's 2008 acquisition of Wanzek Construction. After the secondary offering, Mr. Wanzek and his affiliates will remain one of MasTec's largest shareholders, with ownership of approximately 2.3 million common shares. Mr. Wanzek continues to serve as President of Wanzek Construction under a long-term employment contract.
The new $100,000,000 senior convertible notes have an interest rate of 4%, with interest paid semi-annually, and will mature on June 15, 2014, unless earlier repurchased or converted. Proceeds from the new senior convertible notes, will be used for working capital, possible acquisitions of assets and businesses and for general corporate purposes. In addition, proceeds from the new senior convertible notes were used to redeem, at par, $55 million 8% notes, convertible at $12 per share, issued to Mr. Wanzek and his affiliates in conjunction with MasTec's 2008 acquisition of Wanzek Construction.
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 Company has also granted the underwriters a 30-day option to purchase up to an additional $15,000,000 aggregate principal amount of convertible notes on the same terms and conditions to cover over-allotments, if any.
In conjunction with the convertible note offering, certain Wanzek acquisition related shareholders offered a total of 5.175 million shares of MasTec common stock at a public offering price of $12.125 per share, which included full exercise of a 15% over-allotment option. The initial 4.5 million share sale closed and funded on June 5th, with final closing of the 675,000 share over-allotment, which has been fully exercised by the underwriters, expected to take place on June 10th.
