Fitch rates Meritage Homes convertibles BB-

Fitch Ratings said it assigned a BB- with a recovery rating of RR3 to Meritage Homes Corp.'s proposed offering of $100 million principal amount of convertible senior unsecured notes due 2032.

This issue will be rated on a pari passu basis with all other senior unsecured debt.

Meritage has a long-term issuer default rating of B+, senior unsecured debt rating of BB- with a recovery rating of RR3 and senior subordinated debt rating of B- with a recovery rating of RR6.

The proceeds will be used for working capital and general corporate purposes.

The outlook is stable.

The ratings are influenced by the company's execution of its business model, conservative land policies, geographic and product line diversity, acquisitive orientation and healthy liquidity position, Fitch said.

Builder and investor enthusiasm have surged so far in 2012, the agency said.

But national housing metrics have not entirely kept pace, Fitch said.

© 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.