New Tutor Perini convertible expands on swap as shares rally; MTS Systems sells mandatory

By Rebecca Melvin

New York, June 10 – Tutor Perini Corp.’s newly priced 2.875% convertibles traded up on Friday after the Los Angeles-based construction management company priced an upsized $175 million of the five-year senior notes at the rich end of talked terms.

The new issue was initially talked to be $125 million in size.

The new Tutor Perini convertibles were seen last at 104.25 bid, 104.75 offered, with Tutor Perini shares up 86 cents, or 3.9%, at $22.86.

“They have taken off with the stock and done well. The stock rallied from about midmorning to noon, running up to $22.98 from $21.70. That’s a big move, percentage-wise,” a New York-based trader said.

Out of the chute, the new bond traded at 102.75 bid, 103.25 offered versus Thursday’s closing share price of $22.00, the trader said.

The new Tutor Perini deal, which was nicely upsized, accounted for much of Friday’s trading action, a trader said.

Also pricing was MTS Systems Corp.’s $100 million of three-year tangible equity units, or 1 million units at $100 each. That paper has a distribution rate of 8.75% and a premium over the threshold appreciation price of 20%.

MTS, an Eden Prairie, Minn.-based supplier of high-performance test systems and position sensors, is using proceeds to partially fund the acquisition of PCB Group Inc., a Depew, N.Y.-based designer, manufacturer and distributor of sensor technologies.

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