- Extends spring-forward maturity provision on 89.8% of the
Term Loan B Facility to April 21, 2025
- Entered into agreement with Goldman Sachs & Co. as lead
advisor for Senior Notes refinancing
Tutor Perini Corporation (NYSE: TPC) (the “Company”), a leading
civil, building and specialty construction company, announced today
the amendment of its Credit Agreement, dated August 18, 2020, to
modify the spring-forward maturity provision and provide the
Company with additional financial flexibility.
As previously disclosed by the Company, if any of the Company’s
6.875% Senior Notes due May 1, 2025 (the “Senior Notes”) are
outstanding on January 30, 2025, the spring-forward maturity
provision of the Credit Agreement would have caused the maturity
dates of both the Term Loan B Facility and the Revolver to
accelerate from August 18, 2025 (for the Revolver) and August 18,
2027 (for the Term Loan B Facility) to January 30, 2025. As of
December 20, 2023, the Company had $368.2 million outstanding under
the Term Loan B Facility, no balance outstanding under the Revolver
and $500 million of Senior Notes outstanding.
The amendment, which became effective on December 20, 2023,
modifies this spring-forward maturity provision in respect of the
portion of the Term Loan B Facility held by lenders that consented
to the amendment. As modified, the spring-forward maturity date for
the portion of the Term Loan B Facility held by consenting lenders
will not occur until April 21, 2025, if any of the Senior Notes are
outstanding on that date.
Lenders holding approximately 89.8% of the aggregate principal
amount outstanding under the Term Loan B Facility have consented to
the amendment. Under the amendment, each consenting lender was paid
a fee of 0.50% of the aggregate principal amount of the portion of
the Term Loan B Facility that it holds.
Perella Weinberg Partners LP led the amendment process for the
Company.
The Company also announced today that it has entered into an
agreement with Goldman Sachs & Co. LLC to assist with the
refinancing of the Senior Notes in early 2024. The Company is
considering using a portion of its current and expected cash
balances to repay debt or assist in the refinancing efforts.
Gary Smalley, President of the Company, commented, “We are
pleased to have completed this amendment, which provides us with
additional flexibility to collect significant cash that we can
apply toward a refinancing transaction. We wish to express our
gratitude to Perella Weinberg Partners for their efforts in helping
us secure the amendment. We also look forward to working with
Goldman Sachs on the refinancing in early 2024.”
About Tutor Perini Corporation
Tutor Perini Corporation is a leading civil, building and
specialty construction company offering diversified general
contracting and design-build services to private customers and
public agencies throughout the world. We have provided construction
services since 1894 and have established a strong reputation within
our markets by executing large, complex projects on time and within
budget, while adhering to strict quality control measures. We offer
general contracting, pre-construction planning and comprehensive
project management services, including planning and scheduling of
manpower, equipment, materials and subcontractors required for a
project. We also offer self-performed construction services
including site work, concrete forming and placement, steel
erection, electrical, mechanical, plumbing and heating, ventilation
and air conditioning (HVAC). We are known for our major complex
building project commitments, as well as our capacity to perform
large and complex transportation and heavy civil construction for
government agencies and private customers throughout the world.
Forward-Looking Statements
The statements contained in this release that are not purely
historical are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, including
without limitation, statements regarding the Company’s
expectations, hopes, beliefs, intentions or strategies regarding
the future and statements regarding non-historical performance.
These forward-looking statements are based on the Company’s current
expectations and beliefs concerning future developments and their
potential effects on the Company. While the Company’s expectations,
beliefs and projections are expressed in good faith and the Company
believes there is a reasonable basis for them, there can be no
assurance that future developments affecting the Company will be
those that we have anticipated. These forward-looking statements
involve a number of risks, uncertainties (some of which are beyond
the control of the Company) or other assumptions that may cause
actual results or performance to be materially different from those
expressed or implied by such forward-looking statements. These
risks and uncertainties include, but are not limited to:
unfavorable outcomes of existing or future litigation or dispute
resolution proceedings against us or customers (project owners,
developers, general contractors, etc.), subcontractors or
suppliers, as well as failure to promptly recover significant
working capital invested in projects subject to such matters;
revisions of estimates of contract risks, revenue or costs,
economic factors such as inflation, the timing of new awards, or
the pace of project execution, which has resulted and may continue
to result in losses or lower than anticipated profit; increased
competition and failure to secure new contracts; contract
requirements to perform extra work beyond the initial project
scope, which has and in the future could result in disputes or
claims and adversely affect our working capital, profits and cash
flows; risks and other uncertainties associated with assumptions
and estimates used to prepare our financial statements; a
significant slowdown or decline in economic conditions, such as
those presented during a recession; failure to meet contractual
schedule requirements, which could result in higher costs and
reduced profits or, in some cases, exposure to financial liability
for liquidated damages and/or damages to customers, as well as
damage to our reputation; failure to meet our obligations under our
debt agreements (especially in a high interest rate environment),
including as a result of the spring-forward maturity provision in
the Credit Agreement, should it become applicable; our ability to
refinance the Senior Notes, including the timing and terms of a
refinancing process, is subject to market and other conditions;
inability to attract and retain our key officers, and to adequately
plan for their succession, and hire and retain personnel required
to execute and perform on our contracts; possible systems and
information technology interruptions and breaches in data security
and/or privacy; an inability to obtain bonding could have a
negative impact on our operations and results; risks related to our
international operations, such as uncertainty of U.S. government
funding, as well as economic, political, regulatory and other
risks, including risks of loss due to acts of war, labor
conditions, and other unforeseeable events in countries where we do
business, which could adversely affect our revenue and earnings;
decreases in the level of government spending for infrastructure
and other public projects; downgrades in our credit ratings;
failure of our joint venture partners to perform their venture
obligations, which could impose additional financial and
performance obligations on us, resulting in reduced profits or
losses and/or reputational harm; the impact of inclement weather
conditions on projects; risks related to government contracts and
related procurement regulations; significant fluctuations in the
market price of our common stock, which could result in substantial
losses for stockholders and potentially subject us to securities
litigation; client cancellations of, or reductions in scope under,
contracts reported in our backlog; violations of the U.S. Foreign
Corrupt Practices Act and similar worldwide anti-bribery laws;
public health crises, such as COVID-19, have adversely impacted,
and could in the future adversely impact, our business, financial
condition and results of operations by, among other things,
delaying the timing of project bids and/or awards and the timing of
dispute resolutions and associated collections; physical and
regulatory risks related to climate change; impairment of our
goodwill or other indefinite-lived intangible assets; the exertion
of influence over the Company by our chairman and chief executive
officer due to his position and significant ownership interest; and
other risks and uncertainties discussed under the heading “Risk
Factors” in our Annual Report on Form 10-K for the year ended
December 31, 2022 filed on March 15, 2023 and in our Quarterly
Report on Form 10-Q for the quarter ended September 30, 2023 filed
on November 9, 2023, and in other reports that we file with the
Securities and Exchange Commission from time to time. The Company
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required under
applicable securities laws.
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version on businesswire.com: https://www.businesswire.com/news/home/20231220875540/en/
Tutor Perini Corporation Jorge Casado, 818-362-8391 Vice
President, Investor Relations & Corporate Communications
www.tutorperini.com
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