New Issue: Meritage prices $50 million add-on at 103.25

By Paul A. Harris

St. Louis, Feb. 13 - Meritage Corp. priced a $50 million add-on to its 9¾% senior notes due June 1, 2011 (Ba3/B+) at 103.25 Thursday to yield 9.054%, according to a syndicate source.

Price talk was 103-103.5.

Deutsche Bank Securities Inc. was the bookrunner for the Rule 144A offering. Banc One Capital Markets, Fleet Securities and UBS Warburg were co-managers.

The issuer is a Scottsdale, Ariz.-based homebuilder.

Proceeds will be used for general corporate purposes including paying down borrowings on the company's credit facility.

The addition brings the size of the issue outstanding to $205 million.

Issuer:	Meritage Corp.
Amount:	$50 million
Security description:	Add-on to 9¾% senior notes due June 1, 2011
Bookrunner:	Deutsche Bank Securities
Co-managers:	Banc One Capital Markets, Fleet Securities, UBS Warburg
Maturity:	June 1, 2011
Coupon:	9¾%
Price:	103.25
Yield:	9.054%
Call features:	Callable on June 1, 2006 at 104.875, then at 103.25, 101.425, declining to par on June 1, 2009 and thereafter
Equity clawback:	Until June 1, 2004 for 35% at 109.75
Settlement date:	Feb. 21, 2002 (T+5)
Ratings:	Moody's: Ba3
	Standard & Poor's: B+
Price talk:	103-103.5

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