By Jennifer Chiou and Rebecca Melvin
New York, March 5 - M/I Homes Inc. priced an upsized $75 million offering of five-year convertible senior notes after the market close on Tuesday to yield 3%, which fell in the middle of talk of 2.75% to 3.25%.
There is an $11.25 million greenshoe for the notes, which is up from $7.5 million.
The offering was originally expected at a size of $50 million.
The notes priced with an initial conversion premium of 35%.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the joint bookrunners for the registered notes offering, with Comerica Securities, the Huntington Investment Co., PNC Capital Markets LLC and U.S. Bancorp acting as the co-managers.
The notes are convertible at an initial conversion rate of 30.9478 common shares per $1,000 principal amount of notes, which is equal to a conversion price of $32.31 per share.
The convertibles will be non-callable until March 6, 2016 and then will be provisionally callable if shares exceed 130% of the conversion price for at least 20 trading days out of 30. There is takeover protection.
As reported, M/I Homes also priced a concurrent offering of 2.14 million common shares at $23.50 apiece. There is a 321,000 share over-allotment option.
Proceeds will be used to redeem a portion of its outstanding 9.75% series A preferred shares and for general corporate purposes.
Columbus, Ohio-based M/I Homes is a residential home builder.
| Issuer: | M/I Homes Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $75 million
|
| Greenshoe: | $11.25 | million
|
| Maturity: | March 1, 2018
|
| Underwriters: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC as joint bookrunners, and including Comerica Securities, the Huntington Investment Co., PNC Capital Markets LLC and U.S. Bancorp
|
| Coupon: | 3%
|
| Price: | Par
|
| Yield: | 3%
|
| Conversion premium: | 35%
|
| Conversion price: | $32.31
|
| Conversion ratio: | 30.9478
|
| Pricing date: | March 5
|
| Stock symbol: | NYSE: MHO
|
| Stock price: | $23.90 at close March 5
|
| Market capitalization: | $512.36 million
|
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