New Issue: Meritage Homes prices $100 million tap of 7.15% notes to yield 5 7/8%

By Paul A. Harris

Portland, Ore., Nov. 21 - Meritage Homes Corp. priced a $100 million add-on to its non-callable 7.15% senior notes due April 15, 2020 (B1/B+/) at 106.699 to yield 5 7/8% on Thursday, according to a syndicate source.

There was no official price talk.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and BofA Merrill Lynch were the joint bookrunners.

The Scottsdale, Ariz.-based homebuilder plans to use the proceeds for general corporate purposes, including the acquisition and development of land and home construction.

Issuer:	Meritage Homes Corp.
Amount:	$100 million
Maturity:	April 15, 2020
Security description:	Add-on to 7.15% senior notes due April 15, 2020
Bookrunners:	Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch
Coupon:	7.15%
Price:	106.699
Yield:	5 7/8%
Spread:	378 bps
Call protection:	Non-callable
Trade date:	Nov. 21
Settlement date:	Nov. 26 with accrued interest
Ratings:	Moody's: B1
	Standard & Poor's: B+
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	None
Marketing:	Quick to market
Original issue:	$200 million priced at 97.567 to yield 7½% in April 2010
Total issue size:	$300 million

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