New Issue: M/I Homes sells upsized $200 million 8 5/8% eight-year notes at 98.587 to yield 8 7/8%

By Paul A. Harris

St. Louis, Oct. 28 - M/I Homes, Inc. priced an upsized $200 million issue of 8 5/8% eight-year senior notes (Caa1/B-/) at 98.587 to yield 8 7/8% on Thursday, according to an informed source.

The deal was upsized from $150 million.

The yield printed in the middle of the 8¾% to 9% price talk.

Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were the joint bookrunners for the quick-to-market deal.

Proceeds, along with cash on hand, will be used to fund the tender for the company's 6 7/8% notes due 2012.

The issuer is a Columbus, Ohio-based builder of single-family homes.

Issuer:	M/I Homes, Inc.
Face amount:	$200 million, increased from $150 million
Proceeds:	$197,174,000
Maturity:	Nov. 15, 2018
Securities:	Senior notes
Bookrunners:	Citigroup Global Markets Inc., J.P. Morgan Securities LLC
Lead manager:	Wells Fargo Securities
Co-managers:	Huntington, PNC Securities, Comerica Securities, Fifth-Third, Morgan Keegan, US Bancorp
Coupon:	8 5/8%
Price:	98.587
Yield:	8 7/8%
Call features:	Make-whole call at Treasuries plus 50 bps until Nov. 15, 2014, then callable at 104.313, 102.156, par on and after Nov. 15, 2016
Equity clawback:	35% at 108.625 until Nov. 15, 2013
Trade date:	Oct. 28
Settlement date:	Nov. 12
Ratings:	Moody's: Caa1
	Standard & Poor's: B-
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	8¾% to 9%
Marketing:	Quick to market

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