Loan & DebtMay 18, 2026, 08:47 AM
Granite Construction to Offer $600M Senior Notes, Redeem 2028 Convertibles
AI Summary
Granite Construction Incorporated announced its intention to offer $600.0 million in senior notes due 2034 through a private offering. The company plans to use the net proceeds, along with cash on hand and funds from unwinding capped call transactions, to redeem all outstanding 3.75% Convertible Senior Notes due 2028, which have an estimated market value of $827.3 million. Granite expects to receive approximately $160.0 million from the capped call unwind. Any remaining proceeds will be used to repay borrowings under its revolving credit facility and for general corporate purposes.
Key Highlights
- Granite Construction plans to offer $600.0 million aggregate principal amount of senior notes due 2034 in a private offering.
- Net proceeds, cash on hand, and payments from capped call transactions will redeem outstanding 3.75% Convertible Senior Notes due 2028.
- The estimated market value of the 2028 Notes is approximately $827.3 million.
- The company expects to receive approximately $160.0 million from unwinding 2028 Capped Call Transactions.
- Conversions of 2028 Notes may be settled in cash up to $2,617.41 per $1,000 principal, with remaining in shares.
- Any remaining proceeds will repay borrowings under its revolving credit facility and for general corporate purposes.
Price Impact
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