New Issue: M/I Homes sells upsized $30 million tap of 8 5/8% notes due 2018 at 99

By Paul A. Harris

Portland, Ore., May 3 - M/I Homes, Inc. priced an upsized $30 million add-on to its 8 5/8% senior notes due Nov. 15, 2018 (Caa1) at 99 on Thursday, according to an informed source.

The reoffer price renders an 8.829% yield to maturity.

Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were the joint bookrunners for the quick-to-market add-on, which was upsized from $25 million.

The Columbus, Ohio-based home builder plans to use the proceeds for general corporate purposes, which may include acquisitions of land, debt repayment, capital expenditures and working capital.

The original $200 million issue priced at 98.587 to yield 8 7/8% in October 2010.

Issuer:	M/I Homes, Inc.
Face amount:	$30 million, increased from $25 million
Proceeds:	$29.7 million
Maturity:	Nov. 15, 2018
Security description:	Add-on to 8 5/8% senior notes due Nov. 15, 2018
Bookrunners:	Citigroup Global Markets Inc., J.P. Morgan Securities LLC
Coupon:	8 5/8%
Price:	99
Yield to maturity:	8.829%
Spread:	762 bps
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:	May 3
Settlement date:	May 8 with accrued interest
Rating:	Moody's: Caa1
Marketing:	Quick to market
Original issue:	$200 million priced at 98.587 to yield 8 7/8% in October 2010
Total issue size:	$230 million

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