Granite Construction Prices $600M Senior Notes Offering
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 18 2026
0mins
Source: seekingalpha
- Financing Scale: Granite Construction has priced a $600 million offering of senior notes at a 6.375% interest rate, expected to close on June 2, providing crucial funding to optimize its capital structure.
- Debt Restructuring Plan: The company intends to use the proceeds from this offering, along with cash on hand, to redeem all outstanding 3.75% convertible senior notes due 2028, thereby reducing future interest burdens and improving financial flexibility.
- Diverse Use of Funds: In addition to redeeming convertible notes, Granite may use any remaining proceeds to repay borrowings under its revolving credit facility and for general corporate purposes, which will enhance the company's liquidity and financial stability.
- Subsidiary Guarantees: The senior notes will be guaranteed by certain domestic subsidiaries, further bolstering investor confidence in the debt's security and reflecting the company's robust position in the market.
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Analyst Views on GVA
Wall Street analysts forecast GVA stock price to fall
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 137.310
Low
108.08
Averages
119.04
High
130.00
Current: 137.310
Low
108.08
Averages
119.04
High
130.00
About GVA
Granite Construction Incorporated is a diversified construction and construction materials company in the United States as well as a full-suite civil construction provider. The Company's segments include Construction and Materials. The Construction segment is focused on construction and rehabilitation of roads, pavement preservation, bridges, rail lines, airports, marine ports, dams, reservoirs, aqueducts, infrastructure and site development for use by the general public and water-related construction for municipal agencies, commercial water suppliers, industrial facilities and energy companies. It also provides construction of various complex projects including infrastructure/site development, mining, public safety, tunnel, solar, battery storage and other power-related projects. The Materials segment is focused on production of aggregates, asphalt concrete, liquid asphalt and recycled materials production for internal use in its construction projects and for sale to third parties.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Granite Awarded $41 Million Road Project in Florida
- Project Award: Granite has been awarded a road construction and widening project in Orange County, Florida, valued at approximately $41 million, indicating the company's ongoing expansion in the infrastructure sector and expected enhancement of its market share.
- Project Details: The project includes the construction of a new alignment for All American Boulevard and widening work along Kennedy Boulevard, showcasing the company's capability and commitment to improving transportation infrastructure, which is expected to enhance local traffic flow.
- Timeline: Construction is expected to begin in June 2026 and be completed by January 2029, providing the company with a stable revenue source and contributing positively to its future financial performance.
- Financial Impact: This contract will be included in Granite's committed and awarded projects for the second quarter of 2026, further solidifying its financial foundation for the coming years and reflecting the company's competitiveness in securing large-scale projects.
See More
Granite Awarded Major Construction Project in Florida
- Contract Value: Granite has been awarded the All American Boulevard Construction and Kennedy Boulevard Widening project by Orange County, Florida, with a contract value of approximately $41 million, which will be included in Granite's second quarter 2026 capital expenditures.
- Traffic Improvement Plan: The project aims to enhance traffic flow in a busy commercial corridor by constructing a new alignment for All American Boulevard and widening Kennedy Boulevard, which is expected to significantly alleviate congestion.
- Funding Sources: Funding for the project is provided by Orange County Public Works and the Florida Department of Transportation, ensuring financial backing and smooth execution while strengthening Granite's partnership with local government.
- Construction Timeline: Construction is expected to begin in June 2026 and be completed by January 2029, marking Granite's first direct contract with Orange County and showcasing the company's ongoing growth potential in the infrastructure sector.
See More
Granite Announces Redemption of 2028 Convertible Senior Notes
- Redemption Announcement: Granite Construction has announced the redemption of all outstanding 3.75% Convertible Senior Notes due August 10, 2026, at a price equal to the principal plus accrued interest, reflecting a proactive approach to debt management.
- Increased Conversion Rate: The conversion rate for the 2028 Notes has been raised to 21.8116 shares per $1,000 principal from today until August 6, 2026, with an additional 0.1309 shares, which may incentivize investors to convert before redemption, potentially boosting demand for the company's stock.
- Cash Settlement Option: Granite has opted for cash settlement for conversions during this period, up to $2,617.40 per $1,000 principal, with any excess settled in shares, a flexible approach that could enhance investor participation.
- Risk Advisory: The company cautions investors about the risks associated with forward-looking statements, particularly regarding the potential impact of the redemption and related derivative transactions on stock prices, highlighting market uncertainties and potential volatility.
See More
Granite Construction Prices $600 Million Offering of 6.375% Senior Notes
- Offering Size: Granite Construction has announced the pricing of $600 million in senior notes at a 6.375% interest rate, expected to close on June 2, 2026, which will enhance the company's capital structure and support future financial flexibility.
- Defined Use of Proceeds: The net proceeds from this offering will be used to redeem the 2028 Convertible Senior Notes, which have an estimated market value of approximately $827.3 million, thereby reducing future interest burdens and optimizing the debt structure.
- Conversion Impact: Granite expects that a substantial number of holders of the 2028 Notes will elect to convert, potentially settling partially in shares, which will affect cash outflows and may enhance shareholder value, reflecting the company's confidence in future growth.
- Compliance and Market Positioning: This note offering is exempt from registration and is targeted at qualified institutional buyers, demonstrating Granite's flexibility in capital markets and indicating the company's strategic adaptability in the current market environment.
See More
Granite Construction Prices $600M Senior Notes Offering
- Financing Scale: Granite Construction has priced a $600 million offering of senior notes at a 6.375% interest rate, expected to close on June 2, providing crucial funding to optimize its capital structure.
- Debt Restructuring Plan: The company intends to use the proceeds from this offering, along with cash on hand, to redeem all outstanding 3.75% convertible senior notes due 2028, thereby reducing future interest burdens and improving financial flexibility.
- Diverse Use of Funds: In addition to redeeming convertible notes, Granite may use any remaining proceeds to repay borrowings under its revolving credit facility and for general corporate purposes, which will enhance the company's liquidity and financial stability.
- Subsidiary Guarantees: The senior notes will be guaranteed by certain domestic subsidiaries, further bolstering investor confidence in the debt's security and reflecting the company's robust position in the market.
See More
Granite Construction Plans $600M Senior Notes Offering
- Notes Offering Plan: Granite Construction announced its intention to offer $600 million in senior notes through a private placement, maturing in 2034, which will provide additional funding to enhance financial flexibility.
- Guarantee Structure: The notes will be guaranteed on an unsecured basis by Granite's existing and future domestic subsidiaries, ensuring investor rights and reducing financing risks.
- Use of Proceeds: The company plans to use the net proceeds from the offering, along with cash on hand and cash payments from financial institutions, primarily to repay the 2028 convertible senior notes and outstanding borrowings under its revolving credit facility.
- Market Value Assessment: The estimated market value of the 2028 notes is approximately $827.3 million, based on the closing price of $138.55 per share on the NYSE on May 15, 2026, indicating strong stock performance and future growth potential.
See More
Granite Awarded $41 Million Road Project in Florida
- Project Award: Granite has been awarded a road construction and widening project in Orange County, Florida, valued at approximately $41 million, indicating the company's ongoing expansion in the infrastructure sector and expected enhancement of its market share.
- Project Details: The project includes the construction of a new alignment for All American Boulevard and widening work along Kennedy Boulevard, showcasing the company's capability and commitment to improving transportation infrastructure, which is expected to enhance local traffic flow.
- Timeline: Construction is expected to begin in June 2026 and be completed by January 2029, providing the company with a stable revenue source and contributing positively to its future financial performance.
- Financial Impact: This contract will be included in Granite's committed and awarded projects for the second quarter of 2026, further solidifying its financial foundation for the coming years and reflecting the company's competitiveness in securing large-scale projects.
See More
Granite Awarded Major Construction Project in Florida
- Contract Value: Granite has been awarded the All American Boulevard Construction and Kennedy Boulevard Widening project by Orange County, Florida, with a contract value of approximately $41 million, which will be included in Granite's second quarter 2026 capital expenditures.
- Traffic Improvement Plan: The project aims to enhance traffic flow in a busy commercial corridor by constructing a new alignment for All American Boulevard and widening Kennedy Boulevard, which is expected to significantly alleviate congestion.
- Funding Sources: Funding for the project is provided by Orange County Public Works and the Florida Department of Transportation, ensuring financial backing and smooth execution while strengthening Granite's partnership with local government.
- Construction Timeline: Construction is expected to begin in June 2026 and be completed by January 2029, marking Granite's first direct contract with Orange County and showcasing the company's ongoing growth potential in the infrastructure sector.
See More
Granite Announces Redemption of 2028 Convertible Senior Notes
- Redemption Announcement: Granite Construction has announced the redemption of all outstanding 3.75% Convertible Senior Notes due August 10, 2026, at a price equal to the principal plus accrued interest, reflecting a proactive approach to debt management.
- Increased Conversion Rate: The conversion rate for the 2028 Notes has been raised to 21.8116 shares per $1,000 principal from today until August 6, 2026, with an additional 0.1309 shares, which may incentivize investors to convert before redemption, potentially boosting demand for the company's stock.
- Cash Settlement Option: Granite has opted for cash settlement for conversions during this period, up to $2,617.40 per $1,000 principal, with any excess settled in shares, a flexible approach that could enhance investor participation.
- Risk Advisory: The company cautions investors about the risks associated with forward-looking statements, particularly regarding the potential impact of the redemption and related derivative transactions on stock prices, highlighting market uncertainties and potential volatility.
See More
Granite Construction Prices $600 Million Offering of 6.375% Senior Notes
- Offering Size: Granite Construction has announced the pricing of $600 million in senior notes at a 6.375% interest rate, expected to close on June 2, 2026, which will enhance the company's capital structure and support future financial flexibility.
- Defined Use of Proceeds: The net proceeds from this offering will be used to redeem the 2028 Convertible Senior Notes, which have an estimated market value of approximately $827.3 million, thereby reducing future interest burdens and optimizing the debt structure.
- Conversion Impact: Granite expects that a substantial number of holders of the 2028 Notes will elect to convert, potentially settling partially in shares, which will affect cash outflows and may enhance shareholder value, reflecting the company's confidence in future growth.
- Compliance and Market Positioning: This note offering is exempt from registration and is targeted at qualified institutional buyers, demonstrating Granite's flexibility in capital markets and indicating the company's strategic adaptability in the current market environment.
See More
Granite Construction Prices $600M Senior Notes Offering
- Financing Scale: Granite Construction has priced a $600 million offering of senior notes at a 6.375% interest rate, expected to close on June 2, providing crucial funding to optimize its capital structure.
- Debt Restructuring Plan: The company intends to use the proceeds from this offering, along with cash on hand, to redeem all outstanding 3.75% convertible senior notes due 2028, thereby reducing future interest burdens and improving financial flexibility.
- Diverse Use of Funds: In addition to redeeming convertible notes, Granite may use any remaining proceeds to repay borrowings under its revolving credit facility and for general corporate purposes, which will enhance the company's liquidity and financial stability.
- Subsidiary Guarantees: The senior notes will be guaranteed by certain domestic subsidiaries, further bolstering investor confidence in the debt's security and reflecting the company's robust position in the market.
See More
Granite Construction Plans $600M Senior Notes Offering
- Notes Offering Plan: Granite Construction announced its intention to offer $600 million in senior notes through a private placement, maturing in 2034, which will provide additional funding to enhance financial flexibility.
- Guarantee Structure: The notes will be guaranteed on an unsecured basis by Granite's existing and future domestic subsidiaries, ensuring investor rights and reducing financing risks.
- Use of Proceeds: The company plans to use the net proceeds from the offering, along with cash on hand and cash payments from financial institutions, primarily to repay the 2028 convertible senior notes and outstanding borrowings under its revolving credit facility.
- Market Value Assessment: The estimated market value of the 2028 notes is approximately $827.3 million, based on the closing price of $138.55 per share on the NYSE on May 15, 2026, indicating strong stock performance and future growth potential.
See More
