Granite's revolver lenders, senior noteholders grant temporary waivers

By Marisa Wong

Madison, Wis., Dec. 31 - Granite Construction Inc. obtained temporary waivers on Dec. 24 from the lenders under its revolving credit facility and holders of its senior notes due 2019, according to an 8-K filing with the Securities and Exchange Commission.

The company obtained the temporary waivers after analyzing its expected results of operations for the fourth quarter, which will be negatively affected by impairment charges associated with the disposal of some non-core assets.

The company asked the lenders and noteholders to waive any testing of or compliance with the consolidated tangible net worth and consolidated leverage ratio covenants contained in its credit agreement and note purchase agreement.

These temporary waivers are for the period beginning Oct. 1 through and including March 3.

The company said it intends to negotiate the terms of the debt instruments before the expiration of the waiver period.

Granite is an infrastructure contractor based in Watsonville, Calif.

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