By Paul A. Harris
Portland, Ore., Feb. 27 - Meritage Homes Corp. priced an upsized $175 million issue of non-callable senior notes due March 1, 2018 (B1/B+/BB-) at par to yield 4½% on Wednesday, according to an informed source.
The quick-to-market deal, which was upsized from $150 million, came on top of guidance, according to a buyside source.
The deal will settle on March 13.
Citigroup Global Markets Inc. is the dealer on the Rule 144A with registration rights deal.
The notes feature a 101% poison put.
The Scottsdale, Ariz.-based homebuilder plans to use the proceeds to repurchase or redeem its 7.731% senior subordinated notes due 2017 as well as for general corporate purposes.
| Issuer: | Meritage Homes Corp.
|
| Amount: | $175 million, increased from $150 million
|
| Maturity: | March 1, 2018
|
| Securities: | Senior notes
|
| Bookrunner: | Citigroup Global Markets
|
| Coupon: | 4½%
|
| Price: | Par
|
| Yield: | 4½%
|
| Spread: | 372 bps
|
| Call protection: | Non-callable
|
| Make-whole: | Treasuries plus 50 bps
|
| Investor put: | 101% upon change of control
|
| Trade date: | Feb. 27
|
| Settlement date: | March 13
|
| Ratings: Moody's: B1
|
| Standard & Poor's: B+
|
| Fitch: BB-
|
| Distribution: | Rule 144A with registration rights
|
| Guidance: | 4½%
|
| Marketing: | Quick to market
|
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