Moody's assigns B1 to Meritage notes

Moody's Investors Service said it assigned a B1 rating to Meritage Homes Corp.'s proposed $100 million senior unsecured notes due 2020.

In the same action, the agency affirmed the company's B1 corporate family rating, B1-PD probability of default rating, the B1 rating on the existing senior unsecured notes due 2018, 2020 and 2022 and convertible senior notes due 2032, the provisional B1 rating on the senior unsecured shelf and the SGL-2 speculative grade liquidity rating.

The outlook is stable.

The proposed notes will be guaranteed by all of Meritage's wholly owned subsidiaries, as are the existing senior unsecured notes and convertible senior notes. Proceeds will be used for general corporate purposes, including for acquisition and development of land and home construction.

As a result of this transaction, Moody's said the company's adjusted homebuilding debt to capitalization ratio is expected to increase slightly to 54% from 51% at Sept. 30. Meritage's debt leverage had declined from 56.2% in the third quarter of 2012 as a result of the $76 million deferred tax valuation allowance reversal that benefited equity.

© 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.