GVA - Granite prices offering of $325M convertible notes

2023-05-09 09:33:42 ET

• Granite ( NYSE: GVA ) on Tuesday priced the offering of $325 million convertible senior notes due 2028.
• The convertible notes will bear interest at a rate of 3.75% per annum, payable semi-annually in arrears on May 15 and November 15 of each year, beginning on November 15, 2023.
• Granite granted the initial purchasers of the notes the right to purchase up to an additional $48.75 million of convertible notes.
• The sale of the convertible notes is expected to close on May 11, 2023.
• The convertible notes will mature on May 15, 2028, unless earlier converted, redeemed or repurchased in accordance with their terms.
• The convertible notes will have an initial conversion rate of 21.6807 shares of Granite’s common stock per $1,000 principal amount of the convertible notes.
• The initial conversion price represents a premium of about  30.0% to the $35.48 per share closing price on NYSE on May 8, 2023.
• Granite will not be permitted to redeem the convertible notes prior to May 20, 2026.
• Granite estimates that the net proceeds from the offering, after deductions, will be about $316.0 million or ~$363.6 million if the initial purchasers exercise their option to purchase additional notes.
• Granite intends to use about $46.1 million of the net proceeds to pay the cost of entering into capped call transactions in connection with the convertible notes.
• In addition, the company intends to pay ~$198.8 million of the net proceeds, and issue about 1.39 million shares, in exchange for about $198.7 million of its 2.75% convertible senior notes due 2024.
• Press Release .

For further details see: