Granite Construction Incorporated (NYSE: GVA) announced it has called all outstanding 3.75% Convertible Senior Notes due 2028 for redemption on August 10, 2026, according to a company statement.

The redemption price equals 100% of the principal amount plus accrued and unpaid interest to the redemption date. Holders must surrender certificated notes to Wilmington Trust, National Association, as paying agent, or present notes held through the Depository Trust Company according to applicable DTC procedures.

Noteholders may convert their securities until the close of business on August 6, 2026. The company increased the conversion rate by 0.1309 shares, setting the total conversion rate at 21.8116 shares of common stock per $1,000 principal amount of notes for conversions through August 6.

Granite will settle conversions by paying cash up to $2,617.40 per $1,000 principal amount and delivering common stock for any remaining conversion obligation above that threshold.

The company entered into capped call transactions with financial institutions when it issued the 2028 notes. Granite expects to unwind and terminate these transactions in connection with the redemption, receiving an amount equal to the fair value of the transactions at termination.

The statement notes that counterparties may enter into derivative transactions or purchase or sell Granite shares in secondary markets during the redemption and conversion settlement process, which could affect the stock price.