<PAGE> 1
PETER KIEWIT SONS', INC.
KIEWIT PLAZA
OMAHA, NEBRASKA 68131
(402) 342-2052
[PETER KIEWIT SONS' LOGO]
, 2000
Dear Kiewit Debentureholder:
Enclosed please find the joint offering circular-prospectus dated
, 2000 relating to the exchange offer by Peter Kiewit Sons', Inc.
for its 8.028% Series 1997 Convertible Debentures, its 7.35% Series 1998
Convertible Debentures and its 8.25% Series 1999 Convertible Debentures.
The debenture exchange offer is being made to holders of outstanding Kiewit
convertible debentures on the terms and conditions set forth in the enclosed
offering circular-prospectus. Please read the offering circular-prospectus
carefully before you decide to participate in the debenture exchange offer. If
you decide to participate in the debenture exchange offer, you should carefully
complete the enclosed Letter of Transmittal and return it to us, together with
all debentures and any other required materials, BY 11:59 P.M., ON SEPTEMBER 14,
2000. WE CANNOT ACCEPT TENDERS OF KIEWIT DEBENTURES RECEIVED AFTER THAT TIME.
Kiewit currently expects to distribute Kiewit Materials Company convertible
debentures, new reduced principal amount Kiewit debentures and shares of
Materials common stock as soon as practicable after the expiration of the
debenture exchange offer. In addition, we will be providing you with certain tax
basis and tax reporting information with respect to the securities issued in the
debenture exchange offer.
If you have any questions regarding any of the enclosed materials, please
feel free to call me at (402) 271-2977.
Sincerely,
/s/ Douglas A. Obermier
Douglas A. Obermier
Stock Registrar
<PAGE> 2
, 2000
PETER KIEWIT SONS', INC.
INSTRUCTIONS FOR LETTER OF TRANSMITTAL
TO TENDER
(1) 8.028% SERIES 1997 CONVERTIBLE DEBENTURES OF PETER KIEWIT SONS', INC., DUE
OCTOBER 31, 2007 FOR EITHER:
(a) 8.028% SERIES 2000A CONVERTIBLE DEBENTURES OF KIEWIT MATERIALS
COMPANY, DUE OCTOBER 31, 2010, OR
(b)(i) 8.028% SERIES 1997A CONVERTIBLE DEBENTURES OF PETER KIEWIT SONS',
INC., DUE OCTOBER 31, 2010, AND
(ii) SHARES OF KIEWIT MATERIALS COMPANY COMMON STOCK;
(2) 7.35% SERIES 1998 CONVERTIBLE DEBENTURES OF PETER KIEWIT SONS', INC., DUE
OCTOBER 31, 2008 FOR EITHER:
(a) 7.35% SERIES 2000B CONVERTIBLE DEBENTURES OF KIEWIT MATERIALS
COMPANY, DUE OCTOBER 31, 2010, OR
(b)(i) 7.35% SERIES 1998A CONVERTIBLE DEBENTURES OF PETER KIEWIT SONS',
INC., DUE OCTOBER 31, 2010, AND
(ii) SHARES OF KIEWIT MATERIALS COMPANY COMMON STOCK;
AND
(3) 8.25% SERIES 1999 CONVERTIBLE DEBENTURES OF PETER KIEWIT SONS', INC., DUE
OCTOBER 31, 2008 FOR EITHER:
(a) 8.25% SERIES 2000C CONVERTIBLE DEBENTURES OF KIEWIT MATERIALS
COMPANY, DUE OCTOBER 31, 2010, OR
(b)(i) 8.25% SERIES 1999A CONVERTIBLE DEBENTURES OF PETER KIEWIT SONS',
INC., DUE OCTOBER 31, 2010, AND
(ii) SHARES OF KIEWIT MATERIALS COMPANY COMMON STOCK
PURSUANT TO THE DEBENTURE EXCHANGE OFFER DESCRIBED BELOW
------------------------
Peter Kiewit Sons', Inc. has provided you with a joint offering
circular-prospectus dated , 2000 that describes your right to
exchange 8.028% Series 1997 Kiewit Convertible Debentures, 7.35% Series 1998
Kiewit Convertible Debentures and 8.25% Series 1999 Kiewit Convertible
Debentures held by you on the terms and subject to the conditions set forth in
the offering circular-prospectus and in the Letter of Transmittal attached to
these instructions. THE DEBENTURE EXCHANGE OFFER, THE MATERIALS CONVERTIBLE
DEBENTURES, THE NEW REDUCED PRINCIPAL AMOUNT KIEWIT CONVERTIBLE DEBENTURES AND
THE MATERIALS COMMON STOCK ARE MORE FULLY DESCRIBED IN THE OFFERING
CIRCULAR-PROSPECTUS, AND YOU SHOULD CAREFULLY REVIEW THE OFFERING CIRCULAR-
PROSPECTUS PRIOR TO MAKING A DECISION. Terms used in these instructions and the
Letter of Transmittal and not otherwise defined herein have the meanings given
to them in the offering circular-prospectus.
THE DEBENTURE EXCHANGE OFFER WILL EXPIRE AT 11:59 P.M., OMAHA, NEBRASKA
TIME, ON SEPTEMBER 14, 2000, UNLESS EXTENDED AS DESCRIBED IN THE OFFERING
CIRCULAR-PROSPECTUS.
EXCHANGING KIEWIT CONVERTIBLE DEBENTURES FOR EITHER (i) MATERIALS
CONVERTIBLE DEBENTURES; OR (ii) BOTH SHARES OF MATERIALS COMMON STOCK AND NEW
REDUCED PRINCIPAL AMOUNT KIEWIT CONVERTIBLE DEBENTURES IS
i
<PAGE> 3
STRICTLY VOLUNTARY. IF YOU DO NOT WISH TO EXCHANGE ANY KIEWIT DEBENTURES, DO NOT
FILL OUT THE ATTACHED LETTER OF TRANSMITTAL. KIEWIT DEBENTURES TENDERED PURSUANT
TO THE DEBENTURE EXCHANGE OFFER MAY BE WITHDRAWN PRIOR TO THE EXPIRATION DATE OF
THE DEBENTURE EXCHANGE OFFER ONLY IN THE MANNER DESCRIBED IN THE OFFERING
CIRCULAR-PROSPECTUS; OTHERWISE, SUCH TENDERS ARE IRREVOCABLE BY THE TENDERING
DEBENTUREHOLDERS.
PLEASE READ THE FOLLOWING GENERAL INSTRUCTIONS CAREFULLY BEFORE COMPLETING
THE LETTER OF TRANSMITTAL. FOR FURTHER INFORMATION OR ASSISTANCE CONCERNING THE
LETTER OF TRANSMITTAL, CONTACT DOUGLAS A. OBERMIER, STOCK REGISTRAR, PETER
KIEWIT SONS', INC., KIEWIT PLAZA, OMAHA, NEBRASKA 68131, TELEPHONE (402)
271-2977.
ii
<PAGE> 4
GENERAL INSTRUCTIONS
1. General
The letter of transmittal or a photocopy of it and, if you are electing to
receive convertible debentures of Kiewit Materials Company ("Materials"), a
debenture repurchase agreement or a photocopy of it should be properly filled
in, dated and signed, and should be delivered to the address set forth below:
Douglas A. Obermier
Stock Registrar
Peter Kiewit Sons', Inc.
Kiewit Plaza
Omaha, Nebraska 68131
UNLESS YOU ARE DIRECTING EITHER ENTERPRISE BANK, N.A. OR U.S. BANK, N.A. TO
DELIVER PLEDGED KIEWIT DEBENTURES DIRECTLY TO THE STOCK REGISTRAR AS DESCRIBED
BELOW, YOUR LETTER OF TRANSMITTAL MUST BE ACCOMPANIED BY YOUR KIEWIT DEBENTURES
BEING TENDERED. DO NOT SIGN OR OTHERWISE ENDORSE ANY KIEWIT DEBENTURES TENDERED
PURSUANT TO THE DEBENTURE EXCHANGE OFFER. EXECUTION OF THE LETTER OF TRANSMITTAL
WILL ASSIGN YOUR TENDERED DEBENTURES TO KIEWIT, SUBJECT TO CONSUMMATION OF THE
DEBENTURE EXCHANGE OFFER. If any of your Kiewit debentures being tendered have
been pledged to either Enterprise Bank, N.A. or U.S. Bank, N.A., you must so
indicate in Box C, and upon delivery by you to Kiewit of an executed Letter of
Transmittal, Kiewit and either Enterprise Bank, N.A. or U.S. Bank, N.A. will be
authorized to arrange for (i) the delivery of pledged Kiewit debentures to
Kiewit, and (ii) the delivery to Enterprise Bank, N.A. or U.S. Bank, N.A., as
applicable, of either (i) Materials debentures, or (ii) both shares of Materials
common stock and new reduced principal amount Kiewit debentures to which you are
entitled upon exchange of your original Kiewit debentures.
If any of your Kiewit debentures has been pledged to a lending institution
other than Enterprise Bank, N.A. or U.S. Bank, N.A., you must complete Box B and
arrange with such lending institution for delivery to Kiewit of the pledged
Kiewit debentures. Completion of Box B also will authorize Kiewit to deliver
either (i) Materials convertible debentures, or (ii) both shares of Materials
common stock and new reduced principal amount Kiewit debentures issued in the
debenture exchange offer to such lending institutions. EVEN IF YOU DO NOT
DESIGNATE A LENDING INSTITUTION IN BOX B OR BOX C, KIEWIT MAY DELIVER DEBENTURES
AND/OR STOCK DIRECTLY TO A LENDING INSTITUTION IF KIEWIT BELIEVES IN GOOD FAITH
THAT SUCH LENDING INSTITUTION IS ENTITLED TO RECEIVE SUCH DEBENTURES AND/OR
STOCK UNDER A BORROWING ARRANGEMENT WITH YOU.
TO BE EFFECTIVE, DELIVERY OF THIS LETTER OF TRANSMITTAL, THE KIEWIT
DEBENTURES YOU WISH TO EXCHANGE AND, IF YOU ARE ELECTING TO RECEIVE MATERIALS
DEBENTURES, THE DEBENTURE REPURCHASE AGREEMENT MUST BE MADE PRIOR TO 11:59 P.M.,
OMAHA, NEBRASKA TIME, ON THE EXPIRATION DATE, WHICH WILL BE SEPTEMBER 14, 2000,
UNLESS EXTENDED AS DESCRIBED IN THE OFFERING-CIRCULAR PROSPECTUS. THE METHOD OF
DELIVERY OF ALL DOCUMENTS TO THE STOCK REGISTRAR IS AT YOUR OPTION AND RISK. IF
YOU CHOOSE TO SEND BY MAIL, IT IS RECOMMENDED THAT YOU SEND BY REGISTERED MAIL
WITH RETURN RECEIPT REQUESTED, PROPERLY INSURED.
IF THE DEBENTURE EXCHANGE OFFER IS NOT COMPLETED FOR ANY REASON, YOUR
KIEWIT DEBENTURES WILL BE RETURNED TO YOU (OR TO YOUR LENDER, IF YOUR DEBENTURES
ARE PLEDGED TO A LENDER).
2. Signatures
The signature on the letter of transmittal and the debenture repurchase
agreement (if applicable) must correspond exactly to the name as written on the
face of the Kiewit debentures sent to the Stock Registrar. If you have questions
regarding the name in which your debentures are issued, please contact the Stock
Registrar. If there is insufficient space to list all of your debentures being
submitted to the Stock Registrar or to respond to any other information, please
attach a separate sheet.
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<PAGE> 5
3. Lost Debentures
If one or more of your debentures have been lost or destroyed, you should
contact the Stock Registrar for instructions regarding the relevant
documentation and supporting evidence you will need to submit.
4. Validity of Surrender
A surrender of debentures(s) will not be deemed to have been made until all
irregularities and defects have been cured or waived. Kiewit reserves full
discretion to determine whether the documentation with respect to tendered
Kiewit debentures is complete and generally to resolve all questions relating to
tenders, including the date and hour of receipt of a tender, the propriety of
execution of any document and all other questions regarding the validity or
acceptability of any tender. Kiewit reserves the right to reject any tender not
in proper form or to waive any irregularities or conditions. Kiewit's
interpretation of the terms and conditions of the debenture exchange offer, the
Letter of Transmittal and these Instructions will be final. However, a tendering
debentureholder who disagrees with an interpretation by Kiewit may seek recourse
under state law, to the extent that any such recourse is available. All
improperly tendered Kiewit debentures will be returned, unless irregularities
are waived, without cost to the tendering holder thereof.
5. Repurchase Agreement
If you are electing to receive Materials debentures, you must sign and date
the enclosed debenture repurchase agreement and deliver it, on or prior to the
expiration date, to the address listed above, together with the completed letter
of transmittal and the Kiewit debentures you wish to exchange.
If you are electing to receive both shares of Materials common stock and
new reduced principal amount Kiewit debentures, do not complete or submit the
debenture repurchase agreement.
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<PAGE> 6
LETTER OF TRANSMITTAL
To accompany 8.028% Series 1997 Convertible Debentures, 7.35% Series 1998
Convertible Debentures and 8.25% Series 1999 Convertible Debentures of Peter
Kiewit Sons', Inc., a Delaware corporation, or to authorize the delivery of
pledged Kiewit debentures to Kiewit by either Enterprise Bank, N.A. or U.S.
Bank, N.A., when submitted in connection with the offer by Kiewit to issue
either (i) convertible debentures of Kiewit Materials Company ("Materials"), or
(ii) both shares of Materials common stock and new reduced principal amount
Kiewit debentures in exchange for issued and outstanding Kiewit convertible
debentures as described in the joint offering circular-prospectus dated
, 2000.
Douglas A. Obermier, Stock Registrar:
I hereby tender the Kiewit debentures listed in Box C below for exchange
for either (i) Materials convertible debentures convertible into Materials
common stock, or (ii) both shares of Materials common stock and new reduced
principal amount Kiewit convertible debentures convertible into shares of Kiewit
common stock on the terms and subject to the conditions set forth in the
offering circular-prospectus and this letter of transmittal.
<PAGE> 7
BOX A: NAME AND ADDRESS OF
REGISTERED HOLDER
------------------------------------------------------------
PLEASE TYPE OR PRINT THE NAME OF THE REGISTERED HOLDER OF THE KIEWIT
DEBENTURES LISTED IN BOX C EXACTLY AS SUCH NAME APPEARS ON THE SURRENDERED
DEBENTURE(S) AND THE ADDRESS OF THE REGISTERED HOLDER.
Name and Address of Registered Holder (type or print)
Name:
---------------------------------------------------
Address:
-------------------------------------------------
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(ZIP CODE)
Telephone Number:
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BOX B: SPECIAL DELIVERY
INSTRUCTIONS
------------------------------------------------------------
FILL IN ONLY IF YOUR DEBENTURES ARE TO BE SENT TO A LENDING INSTITUTION, OTHER
THAN ENTERPRISE BANK, N.A. OR U.S. BANK, N.A., TO WHICH YOUR KIEWIT DEBENTURES
ARE PLEDGED.
These special delivery instructions cover either (i) Materials convertible
debentures; or (ii) both shares of Materials common stock and new reduced
principal amount Kiewit convertible debentures issuable in respect of the
following principal amount of Kiewit debentures:
--------------------------------
Mail or deliver to:
Name:
---------------------------------------------------
(PLEASE PRINT)
Address:
-------------------------------------------------
-----------------------------------------------------------
-----------------------------------------------------------
(ZIP CODE)
Lender
Contact person:
-----------------------------------------
Telephone Number:
-------------------------------------
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Upon request, I agree to execute and deliver any additional documents
deemed necessary or desirable by the Stock Registrar to complete the exchange of
the debentures.
Except as otherwise indicated in Box B above or Box C below, the
undersigned requests that the (i) Materials convertible debentures, or the (ii)
new reduced principal amount Kiewit convertible debentures and stock
certificates for any shares of Materials common stock to which the undersigned
is entitled be registered in the name of, and be delivered to, the registered
holder set forth in Box A above at the address set forth in Box A above, subject
to the right of Kiewit to deliver such debentures and/or stock directly to a
lending institution (whether or not such lending institution is set forth in Box
B or Box C) if Kiewit believes in good faith that such lending institution is
entitled to receive such debentures and/or stock under a borrowing arrangement
with the undersigned.
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<PAGE> 8
BOX C: CERTIFICATES TENDERED: Please list in this Box C (and an attached
sheet, if necessary) all the Kiewit Convertible Debentures you are submitting
with this Letter of Transmittal or, if such debentures are pledged to either
Enterprise Bank, N.A. or U.S. Bank, N.A., the debentures you are authorizing to
be surrendered to Kiewit by either Enterprise Bank, N.A. or U.S. Bank, N.A.
<TABLE>
<CAPTION>
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PRINCIPAL
CHECK THE APPROPRIATE BOX: DEBENTURE NO. SERIES AMOUNT
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<S> <C> <C> <C> <C>
DEBENTURES
DEBENTURES HELD BY EITHER ENTERPRISE
ENCLOSED BANK, N.A. OR U.S. BANK,
N.A.
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Total:
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<CAPTION>
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CHECK HERE IF YOU ARE
EXCHANGING FOR NEW
CHECK HERE IF YOU REDUCED PRINCIPAL
ARE EXCHANGING AMOUNT KIEWIT
FOR MATERIALS CONVERTIBLE DEBENTURES
CONVERTIBLE AND SHARES OF MATERIALS
DEBENTURES COMMON STOCK
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<C> <C>
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</TABLE>
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<PAGE> 9
The undersigned represents and warrants that the undersigned has full power
and authority to assign and transfer the debentures tendered and has good title
to such debentures, free and clear (except to the extent pledged to either
Enterprise Bank, N.A. or U.S. Bank, N.A. or to a lending institution named in
Box B above) of all liens, restrictions, charges, encumbrances, pledges,
security interests or other obligations affecting the assignment or transfer of
the debentures, and such debentures are not subject to any adverse claim (except
to the extent so pledged). All authority conferred or agreed to be conferred in
this letter of transmittal shall not be affected by, and shall survive, the
death or incapacity of the undersigned, and any obligation of the undersigned
under this letter of transmittal shall be binding upon successors, assigns,
heirs, executors, administrators and legal representatives of the undersigned.
THE UNDERSIGNED REPRESENTS AND WARRANTS THAT THE UNDERSIGNED HAS RECEIVED
AND READ THE OFFERING JOINT CIRCULAR-PROSPECTUS DATED , 2000, OF PETER
KIEWIT SONS', INC. AND KIEWIT MATERIALS COMPANY RELATING TO THE DEBENTURE
EXCHANGE OFFER.
Signed By:
---------------------------------------
(SIGNATURE)
<TABLE>
<S> <C>
Date: -------------------------------------------------- --------------------------------------------------------------
NAME (PRINT)
</TABLE>
4
