Granite Construction Inc. - GVA STOCK NEWS

Granite (NYSE:GVA) has secured a $15 million contract from the California Department of Transportation (Caltrans) to rehabilitate pavement along State Route 41 (SR41) near Stratford, California. The project, funded by Caltrans and included in Granite’s Q2 CAP, involves removing and replacing failed pavement with 49,400 tons of Hot Mix Asphalt (HMA) and adding 19,100 tons of Rubberized Hot Mix Asphalt (RHMA) from Granite’s Coalinga plant. Other tasks include upgrading guard rails, barriers, and bridge approaches. The project is scheduled to start in July 2024 and finish by July 2025.

Granite (NYSE:GVA) has signed a long-term lease with the Port of Woodland to establish a new construction materials facility on a 25-acre site by the Columbia River. The facility will enhance Granite's presence in Southwest Washington, particularly in the Vancouver Portland Metropolitan area. This development aims to support regional infrastructure growth and sustainability goals. The facility, which will start operating in 2025, will produce high-quality asphaltic concrete using up to 40% recycled asphalt pavement, reducing greenhouse gas emissions. This investment is expected to create jobs and stimulate economic activity in the region.

Granite Construction announced the closing of its $373.75 million Convertible Senior Notes offering, including the full exercise of the initial purchasers' option for an additional $48.75 million. The Convertible Notes, bearing 3.25% interest and maturing in 2030, were sold privately under Rule 144A. Net proceeds are estimated at $364.2 million, after expenses. Granite used $46 million for capped call transactions and $57.6 million to repurchase 2024 notes. Remaining funds will repay term loans and support general corporate purposes. The Convertible Notes have a conversion rate of 12.8398 shares per $1,000 principal and a conversion price of $77.88 per share, a 30% premium over the June 6, 2024, stock price. Granite may redeem the Notes post-2027 under specific conditions and has agreements to mitigate potential stock dilution.

Granite (NYSE:GVA) has announced the appointment of Carlos M. Hernandez to its board of directors, effective June 5, 2024. Hernandez, the former CEO of Fluor , brings extensive experience in manufacturing, procurement, engineering, safety, environmental issues, governance, compliance, risk management, and law. His previous roles include chief legal officer and CEO at Fluor, and he currently serves on the boards of PG&E and Steward Health Care System. Hernandez holds a BS in civil engineering from Purdue University and a JD from the University of Miami School of Law. He has received multiple honors, including the Dallas Hispanic Bar Association Corporate Counsel Diversity Award.

Granite Construction announced the pricing of $325 million in 3.25% Convertible Senior Notes due 2030. Initial purchasers have an option to buy an additional $48.75 million. The notes will start accruing interest from December 15, 2024, with semi-annual payments. They can be converted to common stock at a rate of 12.8398 shares per $1,000 principal, equating to a $77.88 per share conversion price, a 30% premium over the June 6, 2024, closing price. The notes mature on June 15, 2030, and can be redeemed by Granite starting June 21, 2027, if specific conditions are met.

Granite plans to use $40 million of the proceeds for capped call transactions and $57.6 million to repurchase 2024 notes. The net proceeds are estimated at $316.6 million, rising to $364.2 million if additional notes are purchased. The remaining funds will be used for loan repayment and general corporate purposes. The capped call transactions aim to reduce dilution and offset cash payments. The offering is through private placement, to qualified institutional buyers under Rule 144A of the Securities Act.

Granite Construction announced a proposed offering of $325 million in convertible senior notes due 2030. The notes are unsecured, bear interest semi-annually, and will mature on June 15, 2030. Granite will pay cash or deliver common stock upon conversion. The company plans to use the proceeds for repurchasing outstanding notes, capped call transactions, repurchasing common stock, repaying term loans, and general corporate purposes. The offering may impact Granite's stock price due to related hedging and repurchase activities.

Granite Construction announced the full redemption of its outstanding 2.75% Convertible Senior Notes due 2024. The redemption will occur on August 19, 2024, with a cash payment of 100% of the principal amount plus accrued interest. Convertible Notes can be converted into Granite's common stock at an increased conversion rate until August 15, 2024. Granite will settle conversions with cash up to the principal amount and deliver shares for any excess. The company plans to unwind related hedge and warrant transactions, potentially impacting its stock price due to concurrent derivative activities by counterparties.

Granite Construction announced a quarterly cash dividend of $0.13 per common share.

The dividend is payable on July 15, 2024, to shareholders of record at the close of business on June 28, 2024.

Granite (NYSE:GVA) has secured a $48 million contract from the Washington State Department of Transportation (WSDOT) to replace two fish barrier culvert crossings with three new fish passable structures on I-5 in Snohomish County, Washington. This project, funded by WSDOT, will be part of Granite's second-quarter CAP and builds on their successful Padden Creek project completed in 2022. Granite will import 95,000 tons of gravel from its Conway Aggregate Facility for the project, which aims to support WSDOT's compliance with a 2030 injunction. The project is set to start in June 2024 and expected to complete by December 2026.