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Fluor talks $500 million six-year convertible notes to yield 1.125% to 1.625%, up 27.5% to 32.5%
By Abigail W. Adams
Portland, Me., Aug. 7 – Fluor Corp. plans to price $500 million in six-year convertible notes after the market close on Monday with price talk for a coupon of 1.125% to 1.625% and an initial conversion premium of 27.5% to 32.5%, according to a market source.
BofA Securities Inc., Citigroup Global Markets Inc., BNP Paribas Securities Corp. and Wells Fargo Securities LLC are bookrunners for the Rule 144A offering, which carries a greenshoe of $75 million.
The notes are non-callable until Aug. 20, 2026 and then subject to a 130% hurdle.
They are putable upon a fundamental change.
The notes will be settled in cash up to the principal amount with any remainder to be settled in cash, shares or a combination of both at the company’s option.
In connection with the offering, the company will enter into capped call transactions.
Proceeds will be used to cover the cost of the call spread and fund the tender for any and all outstanding 3.5% senior notes due 2024.
Fluor is an Irving, Tex.-based engineering construction company.
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