New Issue: Meritage Homes prices $300 million 10-year bullet at par to yield 5 1/8%

Portland, Ore., May 22 – Meritage Homes Corp. launched and priced a $300 million issue of 10-year senior bullet notes at par to yield 5 1/8%, in a quick-to-market transaction on Monday, according to a syndicate source.

The deal was priced on the investment-grade syndicate desk.

Citigroup Global Markets Inc., BofA Merrill Lynch, J.P. Morgan Securities LLC, RBC Capital Markets, US Bancorp, Mizuho Securities and PNC Capital Markets LLC were the joint bookrunners.

The Scottsdale, Ariz.-based homebuilder plans to use the proceeds to repay debt under its unsecured revolving credit facility and for general corporate purposes which many include, among other things, the refinancing of its 1 7/8% convertible notes due 2032.

Issuer:	Meritage Homes Corp.
Amount:	$300 million
Maturity:	June 6, 2027
Securities:	Senior notes
Bookrunners:	Citigroup, BofA Merrill Lynch, J.P. Morgan, RBC Capital Markets, US Bancorp, Mizuho Securities, PNC Capital Markets LLC
Co-managers:	Regions Securities LLC, Comerica Securities
Coupon:	5 1/8%
Price:	Par
Yield:	5 1/8%
Call protection:	Make-whole call at Treasuries plus 50 bps until six months prior to maturity, then callable at par, otherwise non-callable
Trade date:	May 22
Settlement date:	June 6
Ratings:	Moody’s: Ba2
	S&P: BB-
	Fitch: BB
Distribution:	Rule 144A and Regulation S with registration rights
Marketing:	Quick to market

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