This is a liability management transaction that extends debt maturities from 2028 to 2034 and removes convertible dilution overhang. Monitor pricing of the new notes (spread to Treasuries) for credit signal. The capped call unwind proceeds are estimated but not locked — actual amount depends on stock price and volatility at termination. No change to operational outlook.
Price Chart
Executive Summary
Granite Construction announced a private offering of $600M senior notes due 2034 to refinance its outstanding 3.75% convertible notes due 2028 (estimated market value $827.3M). The company expects to receive ~$160M from unwinding related capped call transactions and use remaining proceeds to repay credit facility borrowings. This debt-for-debt refinancing extends maturities and reduces near-term convertible dilution risk, but adds $600M in senior unsecured debt.
Key Facts
- Granite plans to offer $600.0M aggregate principal amount of senior notes due 2034 in a private Rule 144A/Reg S offering.
- Proceeds, plus cash on hand and ~$160M expected from unwinding capped call transactions, will redeem all outstanding 3.75% Convertible Senior Notes due 2028.
- Estimated market value of the 2028 Notes is ~$827.3M based on GVA closing price of $138.55 on May 15, 2026.
- Conversion settlement expected at ~$2,617.41 per $1,000 principal (approx. $120/share) in cash, with remainder in stock.
- Remaining net proceeds after redemption will repay revolving credit facility borrowings and for general corporate purposes.
Financial Impact
$600M new senior notes issuance; $827.3M convertible notes to be redeemed; ~$160M expected from capped call unwind
Risk Factors
- Offering is subject to market conditions and may not close on expected terms.
- Actual capped call unwind proceeds depend on stock price and volatility — the $160M estimate is illustrative.
- New senior notes increase total debt and interest expense, though replacing convertible debt with straight debt removes equity dilution.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001437749-26-017523 |
| Exhibit: ex_964183.htm | 0001437749-26-017523 |
| Document: 0001437749-26-017523-index-headers.html | 0001437749-26-017523 |
| Document: 0001437749-26-017523-index.html | 0001437749-26-017523 |
| Document: 0001437749-26-017523.txt | 0001437749-26-017523 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 13, 2026 7w ago | 8-K | $127.10 $114.41 | ▼ −9.98% | ▼ −7.99% | $119.92 (−5.65%) |
Aug 7, 2026 8w ago | 8-K | $128.32 $119.30 | ▼ −7.03% | ▼ −6.63% | $119.92 (−6.55%) |
Aug 4, 2026 8w ago | 8-K | $122.11 $117.93 | ▼ −3.42% | ▼ −2.19% | $119.92 (−1.79%) |
Jul 30, 2026 9w ago | 8-K | $114.92 $124.71 | ▲ +8.52% | ▲ +4.55% | $119.92 (+4.35%) |
Jun 15, 2026 15w ago | Insider Cluster | $145.18 $120.93 | ▼ −16.70% | ▼ −16.90% | $119.92 (−17.40%) |
Jun 8, 2026 16w ago | Insider Cluster | $140.05 $144.07 | ▲ +2.87% | ▲ +1.42% | $119.92 (−14.37%) |
Jun 8, 2026 16w ago | Insider Cluster | $140.05 $144.07 | ▲ +2.87% | ▲ +1.42% | $119.92 (−14.37%) |
Jun 8, 2026 16w ago | Insider Cluster | $140.05 $144.07 | ▲ +2.87% | ▲ +1.42% | $119.92 (−14.37%) |
Jun 2, 2026 17w ago | 8-K | $139.03 $145.93 | ▲ +4.96% | ▲ +5.96% | $119.92 (−13.75%) |
May 18, 2026 19w ago | 8-K | $137.28 $145.18 | ▲ +5.75% | ▲ +4.17% | $119.92 (−12.65%) |
US Market Status
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