By Paul A. Harris
Portland, Ore., April 17 – Tutor Perini Corp. priced a $400 million issue of 11 7/8% five-year senior notes (Caa1/CCC+) at 97.71 to yield 12½% on Wednesday, according to market sources.
The yield printed at the tight end of the 12½% to 12¾% yield talk. Price talk also specified that there would be an original issue discount. Initial guidance was in the high-12% to 13% area.
Goldman Sachs & Co. LLC was the left bookrunner. Joint bookrunners were BMO Capital Markets Corp., Deutsche Bank Securities Inc. and M&T Securities Inc.
The new Tutor Perini 11 7/8% notes traded to a premium late Wednesday afternoon, when a trader spotted them at 98½ bid, 98 5/8 offered.
The Los Angeles-based general contractor plans to use the proceeds plus cash on hand to redeem or repay $500 million of its 6 7/8% senior notes due 2025.
| Issuer: | Tutor Perini Corp.
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| Amount: | $400 million
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| Issue: | Senior notes
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| Maturity: | April 30, 2029
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| Left bookrunner: | Goldman Sachs & Co. LLC
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| Joint bookrunners: | BMO Capital Markets Corp., Deutsche Bank Securities Inc. and M&T Securities Inc.
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| Coupon: | 11 7/8%
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| Price: | 97.71
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| Yield: | 12½%
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| Spread: | 784 bps
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| First call: | April 30, 2026 at 108.906
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| Trade date: | April 17
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| Settlement date: | April 22
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| Ratings: | Moody’s: Caa1
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| S&P: CCC+
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 12½% to 12¾% yield, including OID
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| Marketing: | Roadshow
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