The refinancing is credit-positive for TPC's preferred and debt holders, reducing annual interest cost by ~$21M and extending maturities. Monitor Q2 2026 earnings (due by Aug 14, 2026) for evidence of operating improvement that would support the improved leverage profile. The 2026 senior notes trade in the 144A market — watch secondary spreads for relative value vs. the redeemed 2029s.
Price Chart
Executive Summary
Tutor Perini Corp (TPC) amended and restated its existing credit agreement on July 2, 2026, simultaneously issuing $400M of new 6.625% Senior Notes due 2033. The proceeds from the new notes will be used to redeem the outstanding $400M 11.875% Senior Notes due 2029. The new credit facility provides a $350M revolving credit line maturing July 2, 2031, with improved pricing (Pricing Tier 4 initially) and looser financial covenants (max Total Net Leverage Ratio of 3.50x, min Interest Coverage Ratio of 3.00x).
Key Financial Metrics
Key Facts
- Amended and restated $350M revolving credit facility with BMO Bank N.A. as administrative agent, maturing July 2, 2031 (extending from prior maturity).
- Issued $400M aggregate principal amount of 6.625% Senior Notes due July 15, 2033.
- Proceeds used to redeem $400M 11.875% Senior Notes due April 30, 2029, cutting the interest rate by 525bps.
- Pricing Tier 4 initially applied: Adjusted Term SOFR margin of 1.75% for revolving loans, 0.75% for performance L/Cs, commitment fee of 0.20%.
- Total Net Leverage Ratio covenant: not exceed 3.50x (starting fiscal quarter ending June 30, 2026).
- Interest Coverage Ratio covenant: not less than 3.00x (starting fiscal quarter ending June 30, 2026).
- Credit agreement allows for incremental facilities up to the greater of $400M + 100% LTM EBITDA (unrestricted basket) or unlimited subject to 1.50x First Lien Net Leverage Ratio.
- 2024 Senior Notes Accounts established for any portion of 2024 notes not immediately redeemed; remaining notes must be redeemed within 30 days of closing.
Financial Impact
Refinancing $400M of 11.875% debt to 6.625% saves ~$21M in annual cash interest ($400M × 5.25% = $21M), before fees and redemption premiums. New $350M revolver replaces existing facility with longer maturity (July 2031 vs. prior) and improved pricing (initial margin 1.75% vs. higher prior rate).
Risk Factors
- Potential one-time costs from early redemption of the 2024 Senior Notes (make-whole premium) not quantified in filing.
- Leverage ratio covenant (3.50x max Total Net Leverage) still constrains additional debt capacity if EBITDA does not improve.
- Any material adverse change in bonding capacity (Item 6.03(e) notice covenant) could constrain new project wins.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 2 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000077543-26-000163 |
| Document: tpc-indenture2026.htm | 0000077543-26-000163 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 13, 2026 14d ago | 8-K | $83.26 | awaiting T+20 | — | $80.81 (−2.94%) |
Sep 30, 2026 27d ago | GOVT-CONTRACT | $83.26 | awaiting T+20 | — | $80.81 (−2.94%) |
Sep 11, 2026 6w ago | GOVT-CONTRACT | $84.51 $83.49 | ▼ −1.21% | ▼ −3.72% | $80.81 (−4.38%) |
Sep 2, 2026 7w ago | Insider Cluster | $87.32 $86.73 | ▲ +0.68% | ▲ +0.47% | $80.81 (+7.46%) |
Sep 2, 2026 7w ago | GOVT-CONTRACT | $87.32 $86.73 | ▼ −0.68% | ▼ −0.22% | $80.81 (−7.46%) |
Aug 13, 2026 10w ago | GOVT-CONTRACT | $96.82 $84.51 | ▼ −12.71% | ▼ −10.72% | $80.81 (−16.54%) |
Jul 6, 2026 16w ago | 8-K | $79.91 $83.75 | ▲ +4.81% | ▲ +5.37% | $80.81 (+1.13%) |
May 26, 2026 22w ago | 8-K | $74.47 $81.56 | ▲ +9.52% | ▲ +11.42% | $80.81 (+8.51%) |
May 12, 2026 24w ago | GOVT-CONTRACT | $80.50 $73.54 | ▼ −8.65% | ▼ −8.03% | $80.81 (+0.39%) |
May 8, 2026 24w ago | GOVT-CONTRACT | $82.64 $71.41 | ▼ −13.59% | ▼ −13.29% | $80.81 (−2.22%) |
US Market Status
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