Fitch gives B+/RR3 to M/I Homes notes

Fitch Ratings said it assigned a B+/RR3 rating to M/I Homes Inc.'s proposed offering of $350 million aggregate amount of senior unsecured notes in two series.

One series will mature in 2019 and the other series will mature in 2022. These new issues will be equal in right of payment with all other senior unsecured debt.

The company intends to use a portion of the net proceeds to repurchase or redeem all of its existing $230 million of 8 5/8% senior unsecured notes due 2018 and to pay related fees and expenses. MHO intends to use the remaining proceeds of the offering for general corporate purposes.

The outlook is stable.

Fitch said the ratings and outlook reflect the company's execution of its business model in the current housing environment, management's demonstrated ability to manage land and development spending, adequate liquidity position, improving credit metrics and Fitch's expectation of further moderate improvement in the housing market in 2014 and 2015.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.