Engineering & Construction Firm Fluor Raises $500M Via Debt

Fluor Corp FLR has priced a $500 million aggregate principal amount of 1.125% convertible senior notes due 2029 in a private offering.

Fluor has granted the initial purchasers of the notes an option to purchase, within a 13-day period from the first issue date, up to an additional $75 million principal amount of the notes on the same terms and conditions. 

The notes will bear interest at 1.125% per year, which will accrue from August 10, 2023, and will be payable semiannually in arrears on February 15 and August 15 of each year, beginning on February 15, 2024. 

The company estimates that the net proceeds from the Offering will be approximately $486.3 million.

Fluor intends to use a portion of the net proceeds to pay the cost of the capped call transactions and the remainder to repurchase all or a portion of the company's outstanding 2024 notes.

The sale of the notes to the initial purchasers is expected to be completed on August 10, 2023.

Fluor may redeem for cash all or any portion of the Notes, at its option, on or after August 20, 2026.

Price Action: FLR shares closed lower by 4.7% at $34.24 on Monday.