The redemption eliminates a dilutive overhang and reduces leverage, which is credit-positive. Monitor the next quarterly filing for the impact on cash reserves and interest expense. The share issuance is modest relative to market cap (~$5.5B), so dilution is minimal.
Price Chart
Executive Summary
Granite Construction completed the redemption of its $273.7M 3.75% Convertible Senior Notes due 2028 by paying ~$715M in cash and issuing 662,383 shares of common stock. The cash payment was partially funded by ~$148M received from unwinding associated capped call transactions. This deleveraging event eliminates future dilution from the notes and strengthens the balance sheet, though the large cash outlay reduces liquidity.
Key Facts
- Redeemed $273.7M aggregate principal amount of 3.75% Convertible Senior Notes due 2028.
- Issued 662,383 shares of common stock to settle conversions.
- Paid approximately $715 million in cash to settle obligations.
- Received approximately $148 million from unwinding capped call transactions.
- Transaction eliminates future dilution from convertible notes and reduces leverage.
Financial Impact
Net cash outflow of approximately $567M ($715M paid minus $148M received) plus issuance of 662,383 shares. The $273.7M of convertible debt is removed from the balance sheet.
Risk Factors
- Large cash outlay of ~$715M reduces financial flexibility.
- Share issuance of 662,383 shares creates modest dilution for existing shareholders.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000861459-26-000036 |
| Document: 0000861459-26-000036-index-headers.html | 0000861459-26-000036 |
| Document: 0000861459-26-000036-index.html | 0000861459-26-000036 |
| Document: 0000861459-26-000036.txt | 0000861459-26-000036 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 13, 2026 7w ago | 8-K | $127.10 $114.41 | ▼ −9.98% | ▼ −7.99% | $117.97 (−7.18%) |
Aug 7, 2026 8w ago | 8-K | $128.32 $119.30 | ▼ −7.03% | ▼ −6.63% | $117.97 (−8.07%) |
Aug 4, 2026 8w ago | 8-K | $122.11 $117.93 | ▼ −3.42% | ▼ −2.19% | $117.97 (−3.39%) |
Jul 30, 2026 9w ago | 8-K | $114.92 $124.71 | ▲ +8.52% | ▲ +4.55% | $117.97 (+2.65%) |
Jun 15, 2026 15w ago | Insider Cluster | $145.18 $120.93 | ▼ −16.70% | ▼ −16.90% | $117.97 (−18.74%) |
Jun 8, 2026 16w ago | Insider Cluster | $140.05 $144.07 | ▲ +2.87% | ▲ +1.42% | $117.97 (−15.77%) |
Jun 8, 2026 16w ago | Insider Cluster | $140.05 $144.07 | ▲ +2.87% | ▲ +1.42% | $117.97 (−15.77%) |
Jun 8, 2026 16w ago | Insider Cluster | $140.05 $144.07 | ▲ +2.87% | ▲ +1.42% | $117.97 (−15.77%) |
Jun 2, 2026 17w ago | 8-K | $139.03 $145.93 | ▲ +4.96% | ▲ +5.96% | $117.97 (−15.15%) |
May 18, 2026 19w ago | 8-K | $137.28 $145.18 | ▲ +5.75% | ▲ +4.17% | $117.97 (−14.07%) |
US Market Status
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