By Rebecca Melvin
New York, May 6 - D.R. Horton Inc. priced an upsized $450 million of five-year convertible senior notes late Wednesday at par to yield 2% with an initial conversion premium of 21%, according to a syndicate source.
Initially the deal was talked to be $400 million in size.
The registered, off-the-shelf offering priced at the tight end of talk for the coupon, which was 2% to 2.5%, and toward the cheap end of talk for the premium, which was 20% to 25%.
There is an over-allotment option of up to an additional $50 million of notes.
Citigroup Global Markets Inc. was the bookrunner. Joint lead managers were J.P. Morgan Securities Inc., UBS Investment Bank and Wachovia.
Proceeds are earmarked for general corporate purposes, including repayment or repurchase of outstanding debt.
Fort Worth, Texas-based D.R. Horton is a homebuilder.
| Issuer: | D.R. Horton Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $450 million, upsized from $400 million
|
| Greenshoe: | $50 million
|
| Maturity: | May 15, 2014
|
| Bookrunner: | Citigroup Global Markets Inc.
|
| Joint lead managers: | J.P. Morgan Securities Inc., UBS Investment Bank and Wachovia
|
| Coupon: | 2%
|
| Price: | Par
|
| Yield: | 2%
|
| Conversion premium: | 21%
|
| Price talk: | 2%-2.5%, up 20%-25%
|
| Call: | Non-callable for life
|
| Puts: | No puts, except a change-of-control put
|
| Pricing date: | May 6
|
| Distribution: | Registered, off the shelf
|
| Stock symbol: | NYSE: DHI
|
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