By Andrea Heisinger
New York, Jan. 30 - Lennar Corp. priced $450 million of senior notes (Ba3/BB-/BB+) in new and reopened tranches, according to a press release and a market source on Wednesday.
The offering included $275 million of a new note due Dec. 1, 2018 priced at 99.998 to yield 4 1/8%, or Treasuries plus 324 basis points. Pricing was in line with talk in the low 4% area, a market source said.
The notes have a make-whole call at Treasuries plus 50 bps to maturity, with an optional redemption 60 days prior to maturity at par.
There was also a reopening of 4¾% notes due Nov. 15, 2022 to add $175 million. Pricing was at 98.073 to yield 5%, or Treasuries plus 300 bps. Pricing was in line with guidance at 5%.
Outstanding issuance is $525 million, including $350 million sold on Oct. 18, 2012 to yield 4¾%.
The sale was done via Rule 144A and Regulation S. There is a change-of-control put feature at 101%.
Bookrunners were Citigroup Global Markets Inc., Bank of America Merrill Lynch, BMO Capital Markets Corp., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and UBS Securities LLC.
There is a guarantee by some subsidiaries of Lennar.
Proceeds will be used for working capital and general corporate purposes, including repayment or repurchase of some outstanding senior notes.
The homebuilder is based in Miami.
| Issuer: | Lennar Corp.
|
| Issue: | Senior notes
|
| Amount: | $450 million
|
| Bookrunners: | Citigroup Global Markets Inc., Bank of America Merrill Lynch, BMO Capital Markets Corp., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, UBS Securities LLC
|
| Co-managers: | CMA Financial, CB&T, PNC Capital Markets LLC, Texas Capital Bank
|
| Distribution: | Rule 144A, Regulation S
|
| Change-of-control put: | 101%
|
| Trade date: | Jan. 30
|
| Settlement date: | Feb. 4
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB-
|
| Fitch: BB+
|
|
|
| Notes due 2018
|
| Amount: | $275 million
|
| Maturity: | Dec. 1, 2018
|
| Coupon: | 4 1/8%
|
| Price: | 99.998
|
| Yield: | 4 1/8%
|
| Spread: | Treasuries plus 324 bps
|
| Call: | Make-whole at Treasuries plus 50 bps, optional call at par 60 days to maturity
|
| Price talk: | Low 4% area
|
|
|
| Notes due 2022
|
| Amount: | $175 million
|
| Maturity: | Nov. 15, 2022
|
| Coupon: | 4¾%
|
| Price: | 98.073
|
| Yield: | 5%
|
| Spread: | Treasuries plus 300 bps
|
| Price talk: | 5%
|
| Total outstanding: | $525 million, including $350 million sold Oct. 18, 2012
|
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