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In January 2018, Turner Construction completed a $25.6 million bond offering in the Atlanta metro area, the second-largest in U.S. history.
The Atlanta-based construction giant also completed a similar $2.6 billion bond offering earlier in the year.
In addition to its new bond offerings, Turner has also increased its cash flow from operating and capital expenditures by $4.5 billion in 2018.
That includes $4 billion from the $8.9 billion in debt that was sold during the financial crisis, as well as $3.9 million from the refinancing of $3 billion in loan guarantees issued to the company in 2017.
Turner Construction also increased cash flow by $1.7 billion in 2017, largely from an increase in the value of its debt.
The company has raised $2 billion in a series of bonds since January 2018 and a total of $25 billion in bonds since 2016, according to a company statement.
Investors should take note of the $3,200 increase in interest that the company is paying for its 2018 bond offerings.
The company will pay $3 per $100 borrowed for its 2019 bond offerings and $2 per $10,000 borrowed for the 2020 bond offerings; $2 for the 2021 bond offerings as well; and a 2.5% rate on $3 million of principal on all of the 2018 bond offers.
Bond issuers are required to keep the yield on a bond at 3.9% or less.
ATLANTA, GA–(Marketwired – May 17, 2018) -The Atlanta-area-based Turner Construction has completed its largest bond offering since 2016.
The construction company announced Monday it completed a new $25,200 cash flow bond offering that includes a $3-per-dollar debt issuance.
As the Atlanta area has experienced severe drought, the company has become increasingly reliant on financing from the private market.
“This offering will provide additional liquidity for our customers and provide additional opportunities for them to invest in our business,” Turner Construction said in a statement.
“This is an excellent way to begin a long-term investment in our long-lived asset and the future of the Atlanta region.”
As of Monday, Turner’s 2018 bond offering was the second largest in the nation.
TURNER CONSTRUCTION BOND OFFERINGS -ATLANTON, GA -May 17, 2019 $25.60 The Atlanta metro-area construction giant Turner Construction is pleased to announce that it has completed a bond offering totaling $25 million in cash flow, a $2-per-$10,001 increase from a $8-per million debt issuance in 2017 and a $1-per/$1,000 increase from $3-$4 million in 2016.
Turner Construction announced Monday that it completed its $25-million bond offering.
The firm will pay a $20-per $100 borrowing for its first $1 million of 2018 bond issuance, which will be issued at an 8.5%.
The firm expects to pay a 1.5%-2.5%” rate on its new $1 billion of debt issuance as well.
This offering was approved by the Federal Reserve Board, which in a May 2018 letter to the Atlanta-Roswell-Tigard region said that the increase in debt issuance “will help us attract new capital to our operations and provide us with additional liquidity to support our growth.”
ATLANTIC CITY, DE–(AP, May 17 – 2020) -TURNINGER CONSTRUCTIONS has completed the largest bond sale since it was founded in 2000.
It is the largest single-purpose bond offering of any construction company in the U.A.E. since the United States government passed a law allowing bonds to be issued without a public offering.
At $25 per $1,001,000, the bond offers represent a significant amount of cash flow that will help the company achieve its goal of increasing its bond yields to 7% or more.
According to a press release, the first bond issuance of the offering will be in the next few weeks and will be priced at a 6.75% interest rate.
Once fully funded, the firm will have $5.5 million in capital available to expand its workforce and create jobs in the region.
Additionally, the city of Atlanta has agreed to pay $5 million of the bond proceeds to support a new public library and the $6.25 million to repair and expand existing facilities in the city.
Since becoming a public company in 2001, Turner completed more than 4,400 projects, including the construction of the iconic Georgia Dome, the Georgia Aquarium, the State Fairgrounds, and the Cobb County Fairgrounds.
(AP Photo/Doug Mills)