New York, June 9 – Tutor Perini Corp. priced an upsized $175 million of five-year convertible senior notes with a 2.875% coupon and a 37.5% initial conversion premium.
The amount was increased from the planned $125 million and the deal came richer than talk for a yield of 3.25% to 3.75% and at the rich end of talk for an initial conversion premium of 32.5% to 37.5%.
There is a greenshoe for a further $25 million of convertibles, increased from $18.75 million.
The initial conversion price is $30.25.
Goldman Sachs & Co. and SunTrust Robinson Humphrey Inc. are joint bookrunners for the Rule 144A offering.
The notes are non-callable for three years and then become provisionally callable subject to the stock trading above 130% of the conversion price. There are no investor puts, and the notes will be settled in shares or cash or a combination of shares and cash.
Proceeds are being used to repay a portion of borrowings outstanding on bank facilities, including the company’s term loan and revolving credit facility, and for general corporate purposes.
In connection with the offering, the company entered into a consent and second amendment to its credit facility, amending certain covenants to permit the company to perform its obligations under the convertible notes.
Los Angeles-based Tutor Perini is a general contracting and construction management company.
| Issuer: | Tutor Perini Corp.
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| Issue: | Convertible senior notes
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| Amount: | $175 million
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| Greenshoe: | $25 million
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| Maturity: | 2021
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| Coupon: | 2.875%
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| Initial conversion premium: | 37.5%
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| Conversion price: | $30.25
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| Conversion rate: | 33.0579
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| Call: | Starting June 15, 2019 subject to 130% hurdle
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| Net share settlement: | Yes
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| Pricing date: | June 9, after close
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| Settlement: | June 15
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| Bookrunners: | Goldman Sachs & Co., SunTrust Robinson Humphrey Inc.
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| Distribution: | Rule 144A
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| Stock ticker: | NYSE: TPC
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| Stock price: | $22.00 at close on June 9
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| Market capitalization: | $1.08 billion
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