New Issue: Meritage Homes sells upsized $450 million eight-year bullet at par to yield 3 7/8%

By Paul A. Harris

Portland, Ore., March 31 – Meritage Homes Corp. priced an upsized $450 million issue of eight-year senior bullet notes (Ba1/BB+/BB+) at par to yield 3 7/8% in a Wednesday drive-by, according to market sources.

The issue size increased from $400 million.

The yield printed on top of yield talk. Initial guidance was 4 1/8%.

Mizuho Securities USA Inc. was at the left of a syndicate of managers that also included BofA Securities Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, PNC Capital Markets LLC, RBC Capital Markets LLC, Regions Securities LLC, Truist Securities Inc., U.S. Bancorp Investments Inc., CIBC World Markets Corp., Comerica Securities Inc. and Woodrock.

The Scottsdale, Ariz.-based home builder plans to use a portion of the proceeds to redeem all of its $300 million 7% senior notes due 2022.

Issuer:	Meritage Homes Corp.
Amount:	$450 million, increased from $400 million
Maturity:	April 15, 2029
Securities:	Senior notes
Bookrunners:	Mizuho Securities USA Inc., BofA Securities Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, PNC Capital Markets LLC, RBC Capital Markets LLC, Regions Securities LLC, Truist Securities Inc., U.S. Bancorp Investments Inc., CIBC World Markets Corp., Comerica Securities Inc. and Woodrock
Coupon:	3 7/8%
Price:	Par
Yield:	3 7/8%
Spread:	247 bps
Call protection:	Non-callable
Trade date:	March 31
Settlement date:	April 15
Ratings:	Moody's: Ba1
	S&P: BB+
	Fitch: BB+
Distribution:	Rule 144A and Regulation S for life
Price talk:	3 7/8%
Marketing:	Drive-by

© 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.