GVA buys Warren Paving for $540M, secures $600M loan & $600M revolver

Q: How is the $540 million acquisition being financed?

Through a new $600 million senior secured term loan under the amended credit agreement.

Q: What are the key terms of Granite鈥檚 new credit facility?

It provides a $600 m revolver , $600 m term loan , and $75 m delayed-draw loan , maturing 5-Aug-2030 with SOFR+1.25-2.0% margins.

Q: What financial covenants apply to Granite Construction after the amendment?

Minimum interest coverage 3.0脳 and maximum total leverage 3.75脳 (4.25脳 for one year post large deals).

Q: How much unused liquidity does Granite have after closing?

The revolver shows $570.4 million availability after letters of credit and $10 m draws.

[8-K] Granite Construction Inc. Reports Material Event

Filing Impact

(Moderate)

Filing Sentiment

(Neutral)

Form Type

8-K

Rhea-AI Filing Summary

Granite Construction (GVA) executed two material transactions on 5-Aug-25:

$540 million acquisition: Bought 100% of Slats Lucas, LLC and Warren Paving, Inc. from LMS of Hattiesburg L.P. and related sellers. Consideration funded with proceeds from a new senior secured term loan.
Credit overhaul: Closed a Fifth Amended & Restated Credit Agreement providing (1) a $600 million secured revolver, (2) a $600 million secured term loan drawn at close and (3) a delayed-draw term loan up to $75 million.

The facility carries SOFR+1.75% (base rate +0.75%) margins until the March-26 compliance certificate, then 1.25%-2.0%/0.25%-1.0% tiered to leverage. Unused commitment fees start at 0.30%. Both revolver and term loans mature 5-Aug-30; term loans amortize 2.5% annually from Q4-26, rising to 5% through maturity. Covenants require interest coverage 鈮�3.0脳 and leverage 鈮�3.75脳 (4.25脳 for four quarters post large acquisitions). Assets of Granite and certain subsidiaries secure the debt; guaranty agreements were similarly amended.

Post-close liquidity includes $570.4 million unused revolver capacity; letters of credit outstanding total $19.6 million. The acquisition adds vertical integration in asphalt and aggregates, while the accordion feature allows additional debt or notes of at least the greater of $535 million or 100% of consolidated EBITDA, subject to a 1.25脳 secured leverage cap.

Granite Construction(GVA)電� 2025雲� 8鞗� 5鞚� 霊� 瓯挫潣欤检殧瓯半灅毳� 鞁ろ枆頄堨姷雼堧嫟:

5鞏� 4觳滊 雼煬攴滊 鞚胳垬: LMS of Hattiesburg L.P. 氚� 甏€霠� 韺愲Г鞛愲攵€韯� Slats Lucas, LLC鞕€ Warren Paving, Inc.鞚� 100% 歆€攵勳潉鞚胳垬頄堨姷雼堧嫟. 雽€旮堨潃靸堧鞖� 靹犾垳鞙� 雼措炒旮瓣皠雽€於� 靾橃澋旮堨溂搿� 臁半嫭霅橃棃鞀惦媹雼�.
鞁犾毄甑“ 臧滍幐: 雼れ劘氩堨Ц 靾橃爼氚� 鞛瀾靹彪悳鞁犾毄瓿勳暯鞚� 觳搓舶頃橃棳 (1) 6鞏� 雼煬雼措炒須岇爠鞁犾毄頃滊弰, (2) 膦呺 鞁滌爯鞐� 鞚胳稖霅� 6鞏� 雼煬雼措炒旮瓣皠雽€於�, (3) 斓滊寑 7,500毵� 雼煬旯岇 歆€鞐� 鞚胳稖旮瓣皠雽€於滌潉鞝滉车頄堨姷雼堧嫟.

鞚� 旮堨湹鞁滌劋鞚€ 2026雲� 3鞗� 欷€靾� 歃濍獏靹滉箤歆€ SOFR+1.75%(旮办 旮堧Μ +0.75%) 毵堨鞚� 鞝侅毄頃橂┌, 鞚错泟霠堧矂毽鞐� 霐半澕 1.25%-2.0%/0.25%-1.0% 瓿勳傅鞝� 毵堨鞚� 鞝侅毄霅╇媹雼�. 氙胳偓鞖� 鞎届爼靾橃垬耄岆姅 0.30%攵€韯� 鞁滌瀾頃╇媹雼�. 須岇爠鞁犾毄瓿� 旮瓣皠雽€於� 氇憪 2030雲� 8鞗� 5鞚� 毵岅赴鞚措┌, 旮瓣皠雽€於滌潃 2026雲� 4攵勱赴攵€韯� 鞐� 2.5%鞌� 靸來櫂鞚� 鞁滌瀾頃� 毵岅赴旯岇 5%搿� 歃濌皜頃╇媹雼�. 瓿勳暯臁瓣贝鞚€ 鞚挫瀽氤挫儊牍勳湪鈮�3.0脳氚� 霠堧矂毽 鈮�3.75脳(雽€攴滊 鞚胳垬頉� 4攵勱赴霃欖晥 4.25脳)毳� 鞖旉惮頃╇媹雼�. Granite 氚� 鞚茧秬鞛愴殞靷潣鞛愳偘鞚� 攵€毂勲ゼ雼措炒頃橂┌, 氤挫 瓿勳暯霃� 鞙犾偓頃橁矊靾橃爼霅橃棃鞀惦媹雼�.

瓯半灅膦呺 頉� 鞙犽彊靹膘潃 5鞏� 7,040毵� 雼煬鞚� 氙胳偓鞖� 須岇爠鞁犾毄頃滊弰鞕€ 1,960毵� 雼煬鞚� 氚滍枆霅� 鞁犾毄鞛レ溂搿� 甑劚霅╇媹雼�. 鞚措矆鞚胳垬電� 鞎勳姢韺旐姼氚� 瓿灛攵勳暭鞚� 靾橃鞝� 韱淀暕鞚� 於旉皜頃橂┌, 鞎勳綌霐旍柛臁绊暛鞚� 韱淀暣斓滌唽 5鞏� 3,500毵� 雼煬霕愲姅鞐瓣舶 EBITDA鞚� 100% 欷� 雿� 韥� 旮堨暋鞐� 頃措嫻頃橂姅於旉皜攵€毂� 霕愲姅毂勱秾氚滍枆鞚� 臧€電ロ晿氅�, 1.25脳雼措炒霠堧矂毽 頃滊弰臧€ 鞝侅毄霅╇媹雼�.

Granite Construction (GVA) a r茅alis茅 deux op茅rations importantes le 5 ao没t 2025 :

Acquisition de 540 millions de dollars : Acquisition de 100 % de Slats Lucas, LLC et Warren Paving, Inc. aupr猫s de LMS of Hattiesburg L.P. et vendeurs associ茅s. Le paiement a 茅t茅 financ茅 par les produits d'un nouveau pr锚t senior garanti 脿 terme.
R茅vision du cr茅dit : Cl么ture d'un cinqui猫me accord de cr茅dit modifi茅 et r茅vis茅 pr茅voyant (1) une ligne de cr茅dit renouvelable garantie de 600 millions de dollars, (2) un pr锚t 脿 terme garanti de 600 millions de dollars tir茅脿 la cl么ture et (3) un pr锚t 脿 terme 脿 tirage diff茅r茅 jusqu'脿 75 millions de dollars.

La facilit茅 porte des marges SOFR+1,75 % (taux de base +0,75 %) jusqu'au certificat de conformit茅 de mars 2026, puis des marges 茅chelonn茅es de 1,25 % 脿 2,0 % / 0,25 % 脿 1,0 % selon le levier financier. Les frais d'engagement non utilis茅s commencent 脿 0,30 %. La ligne renouvelable et les pr锚ts 脿 terme arrivent 脿茅ch茅ance le 5 ao没t 2030 ; les pr锚ts 脿 terme s'amortissent de 2,5 % par an 脿 partir du quatri猫me trimestre 2026, passant 脿 5 % jusqu'脿 l'茅ch茅ance. Les covenants exigent une couverture des int茅r锚ts 鈮�3,0脳 et un levier 鈮�3,75脳 (4,25脳 pendant quatre trimestres apr猫s de grandes acquisitions). Les actifs de Granite et de certaines filiales garantissent la dette ; les accords de garantie ont 茅t茅 modifi茅s en cons茅quence.

Apr猫s cl么ture, la liquidit茅 comprend une capacit茅 inutilis茅e de la ligne renouvelable de 570,4 millions de dollars ; les lettres de cr茅dit en circulation totalisent 19,6 millions de dollars. L'acquisition ajoute une int茅gration verticale dans l'asphalte et les granulats, tandis que la clause accord茅on permet une dette suppl茅mentaire ou l'茅mission de billets d'au moins le plus 茅lev茅 entre 535 millions de dollars ou 100 % de l'EBITDA consolid茅, sous r茅serve d'un plafond de levier garanti de 1,25脳.

Granite Construction (GVA) f眉hrte am 5. August 2025 zwei wesentliche Transaktionen durch:

Akquisition im Wert von 540 Millionen US-Dollar: Kauf von 100 % von Slats Lucas, LLC und Warren Paving, Inc. von LMS of Hattiesburg L.P. und verbundenen Verk盲ufern. Die Gegenleistung wurde mit den Erl枚sen eines neuen besicherten Senior-Terminkredits finanziert.
碍谤别诲颈迟眉产别谤补谤产别颈迟耻苍驳: Abschluss eines f眉nften ge盲nderten und neu gefassten Kreditvertrags, der (1) eine gesicherte revolvierende Kreditlinie 眉ber 600 Millionen US-Dollar, (2) einen bei Abschluss abgerufenen besicherten Terminkredit 眉ber 600 Millionen US-Dollar und (3) einen verz枚gert abrufbaren Terminkredit von bis zu 75 Millionen US-Dollar vorsieht.

Die Finanzierung tr盲gt Margen von SOFR+1,75 % (Basiszinssatz +0,75 %) bis zum Compliance-Zertifikat im M盲rz 2026, danach gestaffelte Margen von 1,25 %鈥�2,0 %/0,25 %鈥�1,0 % abh盲ngig vom Verschuldungsgrad. Nicht genutzte Kreditgeb眉hren beginnen bei 0,30 %. Sowohl die revolvierende Kreditlinie als auch die Terminkredite laufen am 5. August 2030 aus; die Terminkredite werden ab Q4 2026 j盲hrlich mit 2,5 % amortisiert, steigend auf 5 % bis zur F盲lligkeit. Die Covenants verlangen eine Zinsdeckungsquote 鈮�3,0脳 und eine Verschuldung 鈮�3,75脳 (4,25脳 f眉r vier Quartale nach gro脽en Akquisitionen). Verm枚genswerte von Granite und bestimmten Tochtergesellschaften dienen als Sicherheit; Garantievereinbarungen wurden entsprechend angepasst.

Nach Abschluss betr盲gt die verf眉gbare Liquidit盲t eine ungenutzte revolvierende Kreditkapazit盲t von 570,4 Millionen US-Dollar; ausstehende Akkreditive belaufen sich auf 19,6 Millionen US-Dollar. Die Akquisition erweitert die vertikale Integration im Bereich Asphalt und Zuschlagstoffe, w盲hrend die Akkordeon-Klausel zus盲tzliche Schulden oder Anleihen in H枚he von mindestens dem gr枚脽eren Betrag von 535 Millionen US-Dollar oder 100 % des konsolidierten EBITDA zul盲sst, vorbehaltlich einer gedeckelten gesicherten Verschuldung von 1,25脳.

Insights

TL;DR: Accretive $540 m buy plus ample financing signals strategic expansion but raises leverage.

The Warren Paving/Slats Lucas purchase deepens Granite鈥檚 materials footprint in the Southeast, potentially improving margin mix via vertical integration and stable asphalt demand. Paying 100% cash with a new term loan implies confidence in cash-flow generation. Revolver availability of $570 m preserves flexibility for working-capital swings and bonding requirements. Accordion capacity equal to 鈮�$535 m EBITDA gives room for future bolt-ons. Leverage covenant ceiling of 3.75脳 (4.25脳 post-deal) looks attainable given management鈥檚 historical 2-3脳 range, suggesting limited covenant-breach risk. Overall, strategically positive and likely earnings-accretive once synergies materialize.

TL;DR: Debt-funded deal lifts secured leverage; covenant headroom shrinks, interest costs rise.

The $600 m term loan elevates secured debt and introduces SOFR-linked exposure amid uncertain rate paths. Initial pricing at SOFR+175 bp is modest, yet each 100 bp rate hike adds ~$6 m annual interest. Term loan amortization is light (2.5%-5%/yr), delaying deleveraging. Although the revolver is largely undrawn, accordion features could push leverage higher. Tightest covenant (3.75脳 total leverage) offers buffer, but any EBITDA softness or additional draws could test limits. Investors should monitor free-cash coverage of rising interest and quarterly principal.

Granite Construction(GVA)電� 2025雲� 8鞗� 5鞚� 霊� 瓯挫潣欤检殧瓯半灅毳� 鞁ろ枆頄堨姷雼堧嫟:

5鞏� 4觳滊 雼煬攴滊 鞚胳垬: LMS of Hattiesburg L.P. 氚� 甏€霠� 韺愲Г鞛愲攵€韯� Slats Lucas, LLC鞕€ Warren Paving, Inc.鞚� 100% 歆€攵勳潉鞚胳垬頄堨姷雼堧嫟. 雽€旮堨潃靸堧鞖� 靹犾垳鞙� 雼措炒旮瓣皠雽€於� 靾橃澋旮堨溂搿� 臁半嫭霅橃棃鞀惦媹雼�.
鞁犾毄甑“ 臧滍幐: 雼れ劘氩堨Ц 靾橃爼氚� 鞛瀾靹彪悳鞁犾毄瓿勳暯鞚� 觳搓舶頃橃棳 (1) 6鞏� 雼煬雼措炒須岇爠鞁犾毄頃滊弰, (2) 膦呺 鞁滌爯鞐� 鞚胳稖霅� 6鞏� 雼煬雼措炒旮瓣皠雽€於�, (3) 斓滊寑 7,500毵� 雼煬旯岇 歆€鞐� 鞚胳稖旮瓣皠雽€於滌潉鞝滉车頄堨姷雼堧嫟.

Granite Construction (GVA) a r茅alis茅 deux op茅rations importantes le 5 ao没t 2025 :

Acquisition de 540 millions de dollars : Acquisition de 100 % de Slats Lucas, LLC et Warren Paving, Inc. aupr猫s de LMS of Hattiesburg L.P. et vendeurs associ茅s. Le paiement a 茅t茅 financ茅 par les produits d'un nouveau pr锚t senior garanti 脿 terme.
R茅vision du cr茅dit : Cl么ture d'un cinqui猫me accord de cr茅dit modifi茅 et r茅vis茅 pr茅voyant (1) une ligne de cr茅dit renouvelable garantie de 600 millions de dollars, (2) un pr锚t 脿 terme garanti de 600 millions de dollars tir茅脿 la cl么ture et (3) un pr锚t 脿 terme 脿 tirage diff茅r茅 jusqu'脿 75 millions de dollars.

Granite Construction (GVA) f眉hrte am 5. August 2025 zwei wesentliche Transaktionen durch:

Akquisition im Wert von 540 Millionen US-Dollar: Kauf von 100 % von Slats Lucas, LLC und Warren Paving, Inc. von LMS of Hattiesburg L.P. und verbundenen Verk盲ufern. Die Gegenleistung wurde mit den Erl枚sen eines neuen besicherten Senior-Terminkredits finanziert.
碍谤别诲颈迟眉产别谤补谤产别颈迟耻苍驳: Abschluss eines f眉nften ge盲nderten und neu gefassten Kreditvertrags, der (1) eine gesicherte revolvierende Kreditlinie 眉ber 600 Millionen US-Dollar, (2) einen bei Abschluss abgerufenen besicherten Terminkredit 眉ber 600 Millionen US-Dollar und (3) einen verz枚gert abrufbaren Terminkredit von bis zu 75 Millionen US-Dollar vorsieht.

08/06/2025 - 08:31 AM

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): August 5, 2025

GRANITE CONSTRUCTION INCORPORATED
(Exact Name of Registrant as Specified in its Charter)


Delaware (State or Other Jurisdiction of Incorporation)			1-12911 (Commission File Number)			77-0239383 (IRS Employer Identification No.)

585 West Beach Street

Watsonville, California 95076

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: (831) 724-1011

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	GVA	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 1.01 Entry into a Material Definitive Agreement.

Purchase Agreement

On August 5, 2025, Granite Construction Incorporated, a Delaware corporation (the “Company”), entered into an Equity Purchase Agreement (the “Purchase Agreement”) with LMS of Hattiesburg, L.P., a Mississippi limited partnership (“LMS”), Steven M. Warren, and Melissa W. McGee (collectively, the “Sellers”) and Steven M. Warren, as representative of the Sellers. Pursuant to the Purchase Agreement, the Company purchased all of the outstanding equity interests of Slats Lucas, LLC, a Mississippi limited liability company (“Slats Lucas”) and Warren Paving, Inc., a Mississippi corporation (“Warren Paving”), from the Sellers for $540.0 million, subject to customary closing adjustments (the “Transaction”). The purchase price was paid using a portion of the proceeds from a new $600.0 million senior secured term loan, as described further below.

The Purchase Agreement contained customary representations, warranties and covenants made by each of the Sellers and the Company. The Company has obtained a representation and warranty insurance policy to provide coverage for certain breaches of representations and warranties of the Sellers, which is subject to certain exclusions, deductibles and other terms and conditions set forth therein.

The foregoing description of the Purchase Agreement is qualified in its entirety by reference to the Purchase Agreement attached as Exhibit 2.1 to this Current Report on Form 8-K and incorporated herein by reference. The Purchase Agreement is included to provide investors and security holders with information regarding its terms. It is not intended to provide any other factual information about the Company, the Sellers or any of their respective businesses, subsidiaries or affiliates. The representations, warranties and covenants contained in the Purchase Agreement (1) were made by the parties thereto only for purposes of that agreement and as of specific dates; (2) were made solely for the benefit of the parties to the Purchase Agreement; (3) may be subject to limitations agreed upon by the parties, including being qualified by disclosures made for the purposes of allocating contractual risk between the parties to the Purchase Agreement instead of establishing those matters as facts and (4) may be subject to standards of materiality applicable to the contracting parties that differ from those applicable to investors. Moreover, information concerning the subject matter of the representations, warranties and covenants may change after the date of the Purchase Agreement, which subsequent information may or may not be fully reflected in public disclosures by the Company. Accordingly, investors should not read the representations and warranties in the Purchase Agreement in isolation, but only in conjunction with the other information about the Company and its subsidiaries that the Company includes in reports, statements and other filings it makes with the Securities and Exchange Commission.

Amendment and Restatement of Credit Agreement

The Company entered into the Fifth Amended and Restated Credit Agreement, dated as of August 5, 2025, among the Company, Granite Construction Company, and GILC Incorporated, as borrowers, Bank of America, N.A., as administrative agent, collateral agent, swing line lender and L/C issuer, and the lenders and other parties thereto (the “A&R Credit Agreement”). The A&R Credit Agreement amends and restates the Fourth Amended and Restated Credit Agreement, dated as of June 2, 2022, by and among the Company, Granite Construction Company and GILC Incorporated, as borrowers, Bank of America, N.A., as administrative agent, collateral agent, swing line lender and L/C issuer, and the lenders and other parties thereto to, among other things, provide for (1) a $600.0 million senior secured revolving credit facility (the “Revolver”), (2) a $600.0 million senior secured term loan (the “Initial Term Loan”) and (3) a senior secured term loan in an aggregate amount not to exceed $75.0 million (the “Delayed Draw Term Loan” and together with the Initial Term Loan, the “Term Loans”). The Delayed Draw Term Loan may be borrowed from the closing date of the A&R Credit Agreement until six months after the closing date (the “Term Loan Availability Period”), subject to voluntary termination by the Company of the Delayed Draw Term Loan commitments and termination of the Delayed Draw Term Loan commitments upon the occurrence of an Event of Default (as defined in the A&R Credit Agreement) at the request of or with the consent of the required lenders. The A&R Credit Agreement also includes an accordion feature that allows the Company to increase borrowings under the Revolver, request a new tranche of term loans, or issue one or more series of notes (whether issued in a public offering, Rule 144A or other private placement or purchase or otherwise) or loans or any bridge financing pursuant to financing documentation other than the A&R Credit Agreement, or a combination thereof, in an amount not to exceed (1) the greater of (a) $535.0 million and (b) the amount equal to 100% of Consolidated EBITDA (as defined in the A&R Credit Agreement), calculated on a pro forma basis, plus (2) unlimited additional amounts so long as on a pro forma basis after giving effect to the incurrence of additional indebtedness and after giving effect to all other appropriate pro forma adjustments, the ratio of consolidated funded secured indebtedness to Consolidated EBITDA (as defined in the A&R Credit Agreement) does not exceed 1.25 to 1.0, in each case, subject to lender approval.

The A&R Credit Agreement includes a $150.0 million sublimit for letters of credit ($75.0 million for financial letters of credit) and a $20.0 million sublimit for swingline loans. As of the date hereof, the total unused availability under the Revolver is $570.4 million, resulting from $19.6 million in issued and outstanding letters of credit and $10.0 million of outstanding revolving loans, and the $600.0 million Initial Term Loan is outstanding.

The Company may borrow under the A&R Credit Agreement, at its option, at either (a) a term Secured Overnight Financing Rate (“SOFR”) plus an applicable margin initially and through the delivery of the March 31, 2026 compliance certificate of 1.75% and then ranging from 1.25% to 2.0%, or (b) a base rate plus an applicable margin initially and through the delivery of the March 31, 2026 compliance certificate of 0.75% and then ranging from 0.25% to 1.0%. After delivery of the March 31, 2026 compliance certificate,

the applicable margin will be based on our consolidated leverage ratio set forth on the most recent compliance certificate delivered quarterly. In addition, the Company has agreed to pay an unused commitment fee initially and through the delivery of the March 31, 2026 compliance certificate of 0.300% and then ranging from 0.175% to 0.350%, depending on the Company’s consolidated leverage ratio set forth on the most recent compliance certificate delivered quarterly. Further, during the Term Loan Availability Period, the Company has agreed to pay a ticking fee ranging from 0.175% to 0.350%, depending on the Company’s consolidated leverage ratio, on the amount by which the commitment for Term Loans of $675.0 million exceeds the amount of outstanding Term Loans. The ticking fee will be payable beginning on the 60th day after closing and during the Term Loan Availability Period or until the Delayed Draw Term Loan is made.

The Term Loans will mature on August 5, 2030 (the “Maturity Date”) and will amortize at 2.5% per year payable in quarterly installments beginning with the quarter ending December 31, 2026 through September 30, 2027 and increasing to 5.0% per year payable in quarterly installments until the Maturity Date. The Revolver also matures on the Maturity Date, and no letters of credit issued under the A&R Credit Agreement can have an expiration later than seven days prior to the Maturity Date unless cash collateral arrangements acceptable to the letter of credit issuer have been made.

The financial covenants contained in the A&R Credit Agreement require the maintenance of a minimum consolidated interest coverage ratio of no less than 3.00 to 1.00 and a maximum consolidated leverage ratio of no more than 3.75 to 1.00 (or 4.25 to 1.00 for each of the four consecutive fiscal quarters ending after any acquisition permitted under the A&R Credit Agreement occurs for cash consideration in excess of $100.0 million).

The A&R Credit Agreement contains certain other restrictive covenants that limit the Company’s ability, among other things, to incur certain liens, make certain types of investments, incur additional indebtedness, change the nature of the Company’s business or operations, merge, consolidate, or combine with other entities, sell assets, or make certain payments.

The Company’s obligations under the A&R Credit Agreement are guaranteed by certain of the Company’s subsidiaries and are secured by first priority liens on substantially all of the assets, other than real property, of the Company and the Company’s subsidiaries that are guarantors or borrowers under the A&R Credit Agreement.

The obligations of the Company under the A&R Credit Agreement may be accelerated upon the occurrence of an Event of Default. Events of Default include customary events for a financing agreement of this type, including, without limitation, payment defaults, a material inaccuracy of representations and warranties, defaults in the performance of certain affirmative and negative covenants, defaults on certain other indebtedness of the Company or its subsidiaries, bankruptcy or related defaults, defaults related to certain judgments and the occurrence of a Change in Control (as defined in the A&R Credit Agreement).

The guaranty arrangements under the A&R Credit Agreement were amended and restated pursuant to the Fifth Amended and Restated Guaranty Agreement, dated August 5, 2025, by and among the Company, certain subsidiaries of the Company party thereto as guarantors and Bank of America, N.A., as administrative agent (the “A&R Guaranty Agreement”).

The foregoing description of the A&R Credit Agreement and the A&R Guaranty Agreement is qualified in its entirety by reference to the A&R Credit Agreement and the A&R Guaranty Agreement attached as Exhibit 10.1 and Exhibit 10.2, respectively, to this Current Report on Form 8-K and incorporated herein by reference.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information regarding the A&R Credit Agreement and the A&R Guaranty Agreement set forth under Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.


Exhibit No.						Description
2.1						Equity Purchase Agreement, dated August 5, 2025 by and among Granite Construction Incorporated, LMS of Hattiesburg, L.P., Steven M. Warren, Melissa W. McGee and Steven M. Warren, as sellers’ representative.
10.1						Fifth Amended and Restated Credit Agreement, dated as of August 5, 2025, by and among Granite Construction Incorporated, Granite Construction Company and GILC Incorporated, as borrowers, Bank of America, N.A., as administrative agent, collateral agent, swing line lender and L/C issuer, and the lenders and other parties thereto.
10.2						Fifth Amended and Restated Guaranty Agreement, dated as of August 5, 2025, by and among Granite Construction Incorporated, the other guarantors party thereto and Bank of America, N.A., as administrative agent.
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


			GRANITE CONSTRUCTION INCORPORATED


			By:			/s/ Staci M. Woolsey
						Staci M. Woolsey
						Executive Vice President and Chief Financial Officer

Date: August 6, 2025

Source:

FAQ

What did Granite Construction (GVA) acquire on August 5, 2025?

GVA bought all equity of Slats Lucas, LLC and Warren Paving, Inc. for $540 million cash.

How is the $540 million acquisition being financed?

Through a new $600 million senior secured term loan under the amended credit agreement.

What are the key terms of Granite鈥檚 new credit facility?

It provides a $600 m revolver, $600 m term loan, and $75 m delayed-draw loan, maturing 5-Aug-2030 with SOFR+1.25-2.0% margins.

What financial covenants apply to Granite Construction after the amendment?

Minimum interest coverage 3.0脳 and maximum total leverage 3.75脳 (4.25脳 for one year post large deals).

How much unused liquidity does Granite have after closing?

The revolver shows $570.4 million availability after letters of credit and $10 m draws.

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[8-K] Granite Construction Inc. Reports Material Event

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What did Granite Construction (GVA) acquire on August 5, 2025?

How is the $540 million acquisition being financed?

What are the key terms of Granite鈥檚 new credit facility?

What financial covenants apply to Granite Construction after the amendment?

How much unused liquidity does Granite have after closing?

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[8-K] Granite Construction Inc. Reports Material Event

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M&A Specialist positive

Credit Risk Analyst neutral

FAQ

What did Granite Construction (GVA) acquire on August 5, 2025?

How is the $540 million acquisition being financed?

What are the key terms of Granite鈥檚 new credit facility?

What financial covenants apply to Granite Construction after the amendment?

How much unused liquidity does Granite have after closing?

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