New Issue: Meritage Homes sells $150 million 10-year notes to yield 7.731%

By Paul A. Harris

St. Louis, Feb. 26 - Meritage Homes Corp. privately placed a $150 million issue of 10-year senior subordinated notes (B+) at par to yield 7.731% last Thursday, according to market and company sources.

JP Morgan was involved in the Rule 144A and Regulation S with no registration rights transaction.

Sources said the deal was done as a "club-style" private placement, with sales efforts focused on a very few select accounts.

Proceeds will be used to pay down the company's revolving credit facility.

The issuer is a Scottsdale, Ariz., homebuilder.

Issuer:	Meritage Homes Corp.
Amount:	$150 million
Maturity:	March 1, 2017
Security description:	Senior subordinated notes
Syndicate:	JP Morgan involved in transaction
Coupon:	7.731%
Price:	Par
Yield:	7.731%
Call features:	Make-whole call until March 1, 2012, then at 102.9, 101.9, 101.0, par on and after March 1, 2015
Equity clawback:	For 35% prior to March 1, 2010
Trade date:	Feb. 22
Settlement date:	Feb. 23
Rating:	Standard & Poor's: B+
Distribution:	Rule 144A and Regulation S with no registration rights

© 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.