TETRA TECH INC (TTEK): debt financing — Tetra Tech issues $575M 2.25% convertible notes due 2028; repays $185M revolver & $234M term loan

TETRA TECH INC

Issued $575M aggregate principal of 2.25% Convertible Senior Notes due 2028; net proceeds ~$560.4M.
Used $51.8M for capped call transactions to reduce dilution; initial conversion price ~$196.64/share (25% premium).
Repaid $185M revolver, $234.4M term loan due 2027, and $89.3M term loan due 2026.
Capped call transactions cover conversion offset up to cap price ~$259.56/share (65% premium).
Notes convertible under conditions; company may redeem after Aug 2026 if stock ≥130% of conversion price.

item 1.01 item 2.03 item 3.02 item 8.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

TETRA TECH INC incurred convertible notes of $575.0 million aggregate principal amount with U.S. Bank Trust Company, National Association at 2.25% per year maturing August 15, 2028.

Instrument: convertible notes
Principal: $575.0 million aggregate principal amount
Counterparty: U.S. Bank Trust Company, National Association
Rate: 2.25% per year
Maturity: August 15, 2028
Event: incurrence

Exact text from the filing

On August 22, 2023, Tetra Tech, Inc. (the “Company”) completed its previously announced private offering (the “Offering”) of $575.0 million aggregate principal amount of 2.25% Convertible Senior Notes due 2028 (the “Notes”), including the exercise in full of the initial purchasers’ option to purchase up to an additional $75.0 million principal amount of the Notes. The Notes were issued pursuant to an indenture, dated August 22, 2023 (the “Indenture”), between the Company and U.S. Bank Trust Company, National Association, as trustee.

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

TETRA TECH INC entered into Indenture with U.S. Bank Trust Company, National Association valued at $575.0 million aggregate principal amount (effective 2023-08-22).

Action: entry
Agreement: notes offering
Counterparty: U.S. Bank Trust Company, National Association
Value: $575.0 million aggregate principal amount
Effective: 2023-08-22

Exact text from the filing

On August 22, 2023, Tetra Tech, Inc. (the “Company”) completed its previously announced private offering (the “Offering”) of $575.0 million aggregate principal amount of 2.25% Convertible Senior Notes due 2028 (the “Notes”), including the exercise in full of the initial purchasers’ option to purchase up to an additional $75.0 million principal amount of the Notes. The Notes were issued pursuant to an indenture, dated August 22, 2023 (the “Indenture”), between the Company and U.S. Bank Trust Company, National Association, as trustee.

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10 debt financings filed in the last 30 days. Browse all debt financings →

TETRA TECH INC filing history →

Source: SEC EDGAR

accession 0001104659-23-094243

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