By Paul A. Harris
Portland, Ore., March 27 - Meritage Homes Corp. priced an upsized $300 million issue of non-callable 10-year senior notes (B1/B+/) at par to yield 7% on Tuesday, according to a syndicate source.
The yield printed at the tight end of the 7% to 7¼% yield talk.
Citigroup Global Markets Inc. was the left bookrunner for the quick-to-market issue, which was upsized from $250 million.
Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Bank of America Merrill Lynch were the joint bookrunners.
The Scottsdale, Ariz.-based homebuilder plans to use the proceeds to fund the tender for its existing senior notes due 2015.
| Issuer: | Meritage Homes Corp.
|
| Amount: | $300 million, increased from $250 million
|
| Maturity: | April 1, 2022
|
| Securities: | Senior notes
|
| Left bookrunner: | Citigroup Global Markets Inc.
|
| Joint bookrunners: | Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Bank of America Merrill Lynch
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | 481 bps
|
| Call protection: | Non-callable
|
| Make-whole: | Treasuries plus 50 bps
|
| Change-of-control put: | 101%
|
| Trade date: | March 27
|
| Settlement date: | April 10
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 7% to 7¼%
|
| Marketing: | Quick to market
|
© 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.
