Tutor Perini plans $125 million five-year convertible notes to yield 3.25%-3.75%, up 32.5%-37.5%

By Rebecca Melvin

New York, June 8 – Tutor Perini Corp. plans to price $125 million of five-year convertible senior notes after the market close on Thursday that were talked to yield 3.25% to 3.75% with an initial conversion premium of 32.5% to 37.5%, according to market sources.

The Rule 144A offering has a greenshoe for up to $18.75 million additional notes and was being sold via joint bookrunners Goldman Sachs & Co. and SunTrust Robinson Humphrey Inc.

The notes are non-callable for three years and are provisionally callable thereafter if shares exceed 130% of the conversion price. There are no investor puts, and the notes will be settled in shares or cash or a combination of shares and cash.

Proceeds are being used to repay a portion of borrowings outstanding on bank facilities, including the company’s term loan and revolving credit facility, and for general corporate purposes.

In connection with the offering, the company entered into a consent and second amendment to its credit facility, amending certain covenants to permit the company to perform its obligations under the convertible notes.

Los Angeles-based Tutor Perini is a general contracting and construction management company.

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