By Paul A. Harris
St. Louis, Dec. 14 - Homebuilder Kimball Hill Inc. priced a $203 million issue of 10½% seven-year senior subordinated notes (B3/B) at 98.796 on Wednesday to yield 10¾%, according to a market source.
The yield came at the wide end of the 10½% to 10¾% price talk.
The sale generated about $200.6 million of proceeds.
JP Morgan and Harris Nesbitt were joint bookrunners for the issue that was sold via Rule 144A with registration rights.
Proceeds will be used to repay debt.
The issuer is a Rolling Meadows, Ill., builder of single-family detached homes, townhouses and condominiums in the Chicago area, California, Florida, Nevada, Ohio, Oregon, Texas, Washington and Wisconsin.
| Issuer: | Kimball Hill Inc.
|
| Face amount: | $203 million
|
| Proceeds: | $200.6 million (approximate)
|
| Maturity: | Dec. 15, 2012
|
| Security description: | Senior subordinated notes
|
| Bookrunners: | JP Morgan, Harris Nesbitt
|
| Coupon: | 10½%
|
| Price: | 98.796
|
| Yield: | 10¾%
|
| Spread: | 631 basis points
|
| Call features: | Callable after Dec. 15, 2009 at 105.25, 102.625, par on and after Dec. 15, 2011
|
| Equity clawback: | Until Dec. 15, 2008 for 35% at 110.50
|
| Trade date: | Dec. 14
|
| Settlement date: | Dec. 19
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 10½%-10¾%
|
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