Tutor Perini talks $500 million eight-year notes to yield 7%-7¼%; pricing Wednesday

By Paul Deckelman

New York, Nov. 1 – Tutor Perini Corp. set price talk for its $500 million offering of eight-year senior notes (Ba3/BB) at 7% to 7¼%, high-yield syndicate sources said on Tuesday – wider than the initial guidance of 6% to 6 3/8%.

The sources said that order books would close at 10:30 a.m. ET on Wednesday, with pricing expected thereafter – moving the timetable for the issue up from the originally anticipated Thursday pricing.

The sources said that several covenant changes had been made within the notes’ indenture, including those relating to incurring secured debt and permitted liens, the restricted payments basket and changing the definition of “consolidated EBITDA” for covenant purposes.

The Rule 144A for life and Regulation S offering is coming to market via left bookrunner Goldman Sachs & Co., along with joint bookrunners SunTrust Robinson Humphrey Inc., BMO Capital Markets Corp. and KeyBanc Capital Markets Inc.

The notes have three years of call protection.

Tutor Perini, a Sylmar, Calif.-based civil and building construction company, plans to use the expected new-deal proceeds, together with borrowings under its revolving credit facility, to redeem existing senior notes and to pay existing term loan and revolver borrowings.

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