Tutor Perini Announces Refinancing and New Credit Agreement
August 19 2020 - 4:33PM
Business Wire
- $425 million term loan B
- $175 million revolving credit facility
- Termination of 2017 credit facility, including elimination
of spring-forward maturity provision
- Repurchased $130.1 million of convertible notes
Tutor Perini Corporation (NYSE: TPC) (the “Company”), a leading
civil, building and specialty construction company, announced today
a refinancing and new credit agreement. The agreement includes a
$425 million 7-year term loan B and a $175 million 5-year revolving
credit facility.
The Company will use the proceeds from the term loan to repay
outstanding amounts under its 2017 credit facility and to
repurchase or retire at maturity its 2.875% convertible senior
notes due June 15, 2021. It will use the proceeds from the
revolving credit facility for working capital and other general
corporate purposes. The 2017 credit facility, including its
spring-forward provision that would have accelerated the maturity
of the facility to December 2020 if the convertible notes remained
outstanding, has been terminated.
"We are pleased with the successful execution of the new credit
agreement and especially with the removal of market uncertainties
associated with the spring-forward maturity provision in our
previous credit facility," said Gary Smalley, Executive Vice
President and Chief Financial Officer. "We have capitalized on the
attractive debt markets to further strengthen our balance sheet,
extend our maturities and provide additional financial flexibility
and liquidity. We experienced very strong market interest and
demand for this transaction, demonstrating the confidence that
lenders, investors and other financial participants have in Tutor
Perini’s current and long-term outlook."
The applicable interest rates, at the Company’s option, are
based on LIBOR or a base rate, plus an applicable margin, depending
on leverage. The applicable margin range on the term loan is 4.50%
- 4.75% for LIBOR and 3.50% - 3.75% for base rate. The applicable
margin range on the revolving credit facility is 4.25% - 4.75% for
LIBOR and 3.25% - 3.75% for base rate.
The credit facility is guaranteed by certain of the Company’s
wholly-owned subsidiaries and secured by substantially all of the
Company’s and each guarantor’s assets.
The Company also announced that on August 19, 2020 it
repurchased $130.1 million aggregate principal amount of its
convertible notes pursuant to separate, privately negotiated
arrangements with certain holders of the notes for an aggregate
purchase price of $132.4 million (including accrued and unpaid
interest to the repurchase date). Following the repurchases, $69.9
million aggregate principal amount of the convertible notes remain
outstanding.
About Tutor Perini Corporation
Tutor Perini Corporation is a leading civil, building and
specialty construction company offering diversified general
contracting and design-build services to private clients and public
agencies throughout the world. We have provided construction
services since 1894 and have established a strong reputation within
our markets by executing large, complex projects on time and within
budget while adhering to strict quality control measures.
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version on businesswire.com: https://www.businesswire.com/news/home/20200819005720/en/
Tutor Perini Corporation Jorge Casado, 818-362-8391 Vice
President, Investor Relations and Corporate Communications
www.tutorperini.com
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