Fitch: Tutor Perini notes, convertibles BB-; facility BB+

Fitch Ratings said it assigned a B+ long-term issuer default rating to Tutor Perini Corp. and a BB-/RR3 rating to the planned senior unsecured eight-year fixed-rate notes.

The agency also assigned a BB+/RR1 rating to the company's existing senior secured credit facility and a BB-/RR3 rating to the senior unsecured convertible notes due 2021.

The outlook is stable.

Roughly $800 million of outstanding debt, including the planned notes, is covered by Fitch's ratings.

The new notes will mature in 2025 and will be unconditionally guaranteed by each of the issuer's domestic subsidiaries that guarantee the company's revolving credit facility. Concurrent with the company's senior note offering, Tutor Perini entered into a new $350 million revolving credit facility.

The company intends to use the note proceeds to execute a cash tender offer for any and all of its outstanding 7 5/8% senior notes due 2018. The company will also use the proceeds to pay off the remaining balance of its senior secured term loan. The tender is scheduled to expire on April 17.

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