By Paul A. Harris
St. Louis, Feb. 24 - Meritage Homes Corp. priced an upsized $350 million issue of 10-year notes (Ba3/BB-) at 99.50 with a 6¼% coupon to yield 6.318% in a quick-to-market transaction, according to market sources.
Price talk was in the 6 3/8% area.
UBS Investment Bank and Citigroup were joint bookrunners for the Rule 144A offering. JP Morgan was the co-manager.
Proceeds will be used to fund the tender for the company's outstanding 9¾% notes.
The issue was upsized from $300 million.
The issuer is a Dallas and Scottsdale, Ariz.-based single family home builder.
| Issuer: | Meritage Homes Corp.
|
| Amount: | $350 million (increased from $300 million)
|
| Maturity: | March 15, 2015
|
| Security description: | Senior notes
|
| Bookrunners: | UBS Investment Bank, Citigroup
|
| Co-manager: | JP Morgan
|
| Coupon: | 6¼%
|
| Price: | 99.50
|
| Yield: | 6.318%
|
| Spread: | 204 basis points
|
| Call features: | Callable after March 15, 2010 at 103.125, 102.083, 101.042, par on and after March 15, 2013
|
| Equity clawback: | Until March 15, 2008 for 35% at 106.25
|
| Trade date: | Feb. 24
|
| Settlement date: | March 10
|
| Existing ratings: | Moody's: Ba3
|
| Standard & Poor's: BB-
|
| Price talk: | 6 3/8% area
|
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