S&P gives Meritage notes B+

Standard & Poor's said it assigned its B+ issue rating and 3 recovery rating to Meritage Homes Corp.'s $200 million of senior unsecured notes due 2020 along with a 3 recovery rating.

The newly issued notes will rank equally with all of the company's existing unsecured and unsubordinated debt, the agency said.

However, if a change-of-control repurchase event were to occur, each holder of these new notes would have the right to require Meritage to repurchase all or any part of the notes at a price equal to 101% of their principal amount, plus accrued and unpaid interest, the agency added.

S&P noted that the company plans to use proceeds from the offering to repay its remaining $130 million of outstanding 7% senior unsecured notes due in 2014 and tender for up to $65 million of its $349 million outstanding 6.25% senior unsecured notes due in 2015.

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