Tetra Tech Raises $487M Via Debt Offering

Tetra Tech Inc TTEK has priced its $500.0 million aggregate principal amount of 2.25% Convertible Senior Notes due 2028 in a private placement.

Tetra Tech has also granted the initial purchasers of the notes an option to purchase up to an additional $75.0 million of the notes.

The notes will accrue interest payable semiannually in arrears on February 15 and August 15 of each year, beginning on February 15, 2024, at a rate of 2.25% per year. 

The notes will mature on August 15, 2028, unless earlier converted, redeemed or repurchased. 

Tetra Tech estimates that the net proceeds from the offering will be approximately $487.1 million.

Tetra Tech expects to use the net proceeds to pay $45.0 million for the cost of the capped call transactions, repay all $185.0 million principal amount outstanding under its revolving credit facility, the remaining $234.0 million principal amount outstanding under its senior secured term loan due 2027 and approximately $23.1 million principal amount outstanding under its senior secured term loan due 2026.

Also Read: Tetra Tech Revenue Forecast Revised Upward: Analyst Eyes Sustained Organic Growth And Funding Tailwinds

Price Action: TTEK shares closed lower by 5.54% at $157.31 on Thursday.