Granite Construction is one of the largest diversified construction and construction materials companies in the United States.
Following the sale of its trenchless business and an expanded buyback program, Granite hired HudsonWest to advise on an ASR — retiring approximately 3% of shares outstanding at inception via a competitive auction process.
HudsonWest eliminated public marketing risk, structuring an overnight new issue of convertible notes paired with a concurrent repurchase of existing convertibles. Granite shares closed up nearly 7% post-announcement.
With Granite shares further on the rise, HudsonWest devised a strategy to execute a new 6-year convertible overnight, leveraging existing hedges to efficiently repurchase 97% of Granite's remaining 2024 convertibles.
Granite's stock had risen 262% since the 2028s’ issuance — well above the up-125% capped call — HudsonWest advised on a negotiated exchange using a cash/share hybrid settlement and separately unwound $100MM of the associated capped calls.
Granite Construction first engaged HudsonWest in 2022 for an accelerated share repurchase when its stock was near a trough. Since then, HudsonWest has advised on every major equity-linked transaction Granite has undertaken — becoming the company’s trusted advisor across a four-year period of significant capital markets activity and business growth.
Over this period, Granite grew EBITDA organically and through several successful acquisitions, with significant stock price appreciation since the 2023 convertible issuance.
HudsonWest brings the same independence and expertise to every engagement.