M/I Homes to sell new bonds as condition of 6 7/8% notes tender offer

By Paul Deckelman

New York, Oct. 14 - M/I Homes, Inc. said it is planning an offer of senior notes in the near future as a condition to the completion of a tender offer for the company's existing bonds announced on Thursday.

However, the Columbus, Ohio-based homebuilder offered no specifics as to the size, structure or likely timing of that future bond issue.

In declining to provide specifics to Prospect News, Phillip G. Creek, the company's chief financial officer, executive vice president and treasurer, only said, "We'll see how the tender offer goes and what the market conditions are" at that time.

The company is required to complete a private placement of senior notes as a condition of its tender offer for its $200 million of 6 7/8% senior notes due 2012. It plans to use the net proceeds of the future bond deal, along with cash on hand, to fund the purchase of the notes under that offer and to pay related fees and expenses.

Citigroup is the dealer manager for the tender offer, which is scheduled to expire on Nov. 10. Holders tendering their bonds by the early tender premium deadline of 5 p.m. ET on Oct. 27 will receive total consideration of $1,045 per $1,000 principal amount of notes tendered and accepted for purchase, which includes an early tender premium of $30.00 per $1,000 principal amount.

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