Senior notes are a type of loan that a company borrows from investors, promising to pay it back with interest. They are called "senior" because in case the company faces financial trouble, these lenders are paid back before others. This makes senior notes safer for investors compared to other types of loans or bonds.
revolving credit facilityfinancial
A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.
secured overnight financing rate (sofr)financial
A secured overnight financing rate (SOFR) is the interest rate on very short, one‑day loans that are backed by high‑quality collateral (like government bonds), so lenders face less risk. Investors care because SOFR is a widely used benchmark that sets the cost of borrowing and the pricing of loans, bonds and derivatives; think of it as a trusted yardstick for short‑term interest costs that influences returns and valuations across markets.
total net leverage ratiofinancial
Total net leverage ratio measures how much a company owes after using its cash, compared with the cash it generates in a year; it is usually calculated by subtracting cash from total debt and dividing that net debt by annual operating cash flow or earnings. Investors use it like a debt-to-income check for a household — a higher number means the company may struggle to cover obligations and is riskier, while a lower number suggests more cushion and financial flexibility.
interest coverage ratiofinancial
A measure of how easily a company can pay the interest on its debt, calculated by comparing the earnings it generates from operations to the interest it owes. It matters to investors because a higher ratio means the company can comfortably meet interest payments — like having several paychecks set aside to cover your rent — while a low ratio signals greater risk of missed payments or financial strain.
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LOS ANGELES--(BUSINESS WIRE)--
Tutor Perini Corporation (NYSE: TPC) (the “Company”), a leading civil, building and specialty construction company, announced today that it has completed the redemption of $400 million aggregate principal amount of the Company’s 11.875% Senior Notes due April 30, 2029 (the “2029 Notes”).
The Company funded the redemption of the 2029 Notes with the net proceeds of its previously announced offering of $400 million in aggregate principal amount of 6.625% Senior Notes due 2033, together with cash on hand.
The Company also entered into an amendment and restatement of its existing credit agreement that modified the terms of the existing revolving credit facility, including (a) extending the maturity of the Revolving Credit Facility to July 2, 2031, (b) increasing the commitments under the Revolving Credit Facility from $170.0 million to $350.0 million, (c) reducing the Adjusted Term Secured Overnight Financing Rate (SOFR) margin to a range between 1.75% and 2.50% based on a Total Net Leverage Ratio (compared to the previous range between 4.25% and 4.75% based on a First Lien Net Leverage Ratio) and eliminating the credit spread adjustment (10 bps), (d) reducing the base rate margin to a range between 0.75% and 1.50% based on a Total Net Leverage Ratio (compared to the previous range between 3.25% and 3.75% based on a First Lien Net Leverage Ratio), and (e) replacing the maximum First Lien Net Leverage Ratio financial maintenance covenant (of 2.25 to 1.00) with (1) a maximum Total Net Leverage Ratio of 3.50 to 1.00 and (2) a minimum cash Interest Coverage Ratio of 3.00 to 1.00. Capitalized terms used but not defined herein have the meanings ascribed to such terms in the amended and restated credit agreement, as filed as an exhibit to the Company’s Form 8-K dated July 6, 2026.
The redemption of the 2029 Notes and the amendment and restatement of the credit agreement were both completed on July 2, 2026.
Tutor Perini’s Chief Financial Officer, Ryan Soroka, remarked, “We are pleased with the tremendous progress we continue to make, returning the Company to strong profitability, growing our backlog to new record levels, and generating record cash flows that have enabled us to substantially deleverage our balance sheet. This has enabled us to successfully complete our recent refinancing, which extends our debt maturities, significantly reduces future interest expense, and more than doubles the size of our revolving credit facility while providing us with meaningfully improved terms.”
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 safety and quality control measures. We offer general contracting, pre-construction planning and comprehensive project management services, and have strong expertise in delivering design-bid-build, design-build, construction management, and public-private partnership (P3) projects. We often self-perform multiple project components, including earthwork, excavation, concrete forming and placement, steel erection, electrical, mechanical, plumbing, heating, ventilation and air conditioning (HVAC), and fire protection.
