Tetra Tech Raises $487M Via Debt Offering
Portfolio Pulse from Shivani Kumaresan
Tetra Tech Inc has priced its $500 million aggregate principal amount of 2.25% Convertible Senior Notes due 2028 in a private placement. The company estimates that the net proceeds from the offering will be approximately $487.1 million. Tetra Tech plans to use the proceeds to pay for the cost of the capped call transactions, repay all outstanding amounts under its revolving credit facility and senior secured term loans. TTEK shares closed lower by 5.54% at $157.31 on Thursday.
August 18, 2023 | 10:33 am
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Tetra Tech's debt offering of $500 million is expected to raise $487.1 million. The proceeds will be used to repay outstanding loans and for capped call transactions. The company's stock closed lower by 5.54%.
The news of Tetra Tech's debt offering is directly related to the company's financial strategy. The proceeds will be used to repay outstanding loans, which could improve the company's financial health in the long term. However, the immediate market reaction was negative, with the company's stock price closing lower by 5.54%. This suggests that investors may have concerns about the company's increasing debt levels.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100