S&P rates Tutor Perini notes BB-

S&P said it assigned its BB- issue-level rating and 3 recovery rating to Tutor Perini Corp.'s proposed $500 million senior unsecured notes due 2025. The 3 recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in a payment default scenario.

At the same time, S&P affirmed its B issue-level rating on Tutor Perini's $200 million convertible notes due 2021. The 6 recovery rating remains unchanged, indicating an expectation for negligible recovery (0%-10%; rounded estimate: 0%) in the event of a payment default.

The company anticipates that it will use the proceeds from the new $500 million unsecured notes, together with borrowings from its new revolving credit facility, to repurchase any and all of its outstanding $300 million senior unsecured notes due 2018 and pay off its existing term loan and revolver.

“The refinancing transaction will not significantly alter the company's credit metrics, therefore all of our other ratings on Tutor Perini, including our BB- corporate credit rating, remain unchanged,” S&P said in a news release.

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