By Paul Deckelman
New York, April 23 - Lennar Corp. priced an upsized $400 million issue of eight-year senior notes, high-yield syndicate sources said Thursday.
The Miami-based homebuilder's quickly shopped offering - upsized from the $250 million originally talked around the market - carried a 12¼% coupon and priced at 98.123 to yield 12 5/8%, the sources said. The bonds priced at a spread of 969.6 basis points over comparable Treasuries.
Price talk on the deal did not circulate beforehand. The issue priced late in the session, and there was no immediate aftermarket activity seen.
The bonds (B3/BB-), being sold under Rule 144A with registration rights and Regulations S, are non-callable for life, and carry a make-whole call provision at 50 bps over Treasuries.
Market sources said that Citigroup was the bookrunner on the issue.
Proceeds will be used for general corporate purposes, possibly including repayment or repurchase of the company's near-term debt maturities or of debt of its joint ventures that it has guaranteed.
| Issuer: | Lennar Corp.
|
| Issue: | Senior notes
|
| Amount: | $400 million (upsized from $250 million)
|
| Maturity: | May 15, 2017
|
| Bookrunner: | Citigroup
|
| Coupon: | 12¼%
|
| Price: | 98.123
|
| Yield: | 12 5/8%
|
| Spread: | 969.60 basis points
|
| Call protection: | Make-whole provision at Treasuries plus 50 bps, otherwise non-callable for life of issue
|
| Pricing date: | April 23
|
| Settlement date: | April 30
|
| Ratings: | Moody's: B3
|
| Standard & Poor's BB-
|
| Distribution: | Rule 144A with registration rights/Regulation S
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
