Engineering & Construction Firm Fluor Raises $500M Via Debt
Portfolio Pulse from Shivani Kumaresan
Fluor Corp has priced a $500 million aggregate principal amount of 1.125% convertible senior notes due 2029 in a private offering. The company has granted the initial purchasers of the notes an option to purchase up to an additional $75 million principal amount of the notes. 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.
August 08, 2023 | 10:28 am
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Fluor Corp's recent debt offering could potentially impact its financial stability and liquidity. The proceeds will be used to pay for capped call transactions and repurchase outstanding 2024 notes.
The debt offering will increase Fluor Corp's liabilities, but it could also improve its liquidity by providing funds to pay for capped call transactions and repurchase outstanding 2024 notes. This could potentially stabilize the company's financial situation in the short term, but the long-term impact will depend on the company's ability to manage its debt.
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