M/I Homes expects to price $350 million two-part senior notes Monday

By Paul A. Harris

Portland, Ore., Oct. 27 – M/I Homes, Inc. was scheduled to hold a conference call with investors late Monday morning to discuss its proposed $350 million offering of senior notes (B1/B/B+) in two tranches Monday, according to a syndicate source.

The offering is coming in tranches of five-year notes, callable after two years at par plus 50% of the coupon and featuring a two-year 40% equity clawback, as well as eight-year notes, callable after three years at par plus 75% of the coupon, with a three-year 40% equity clawback.

Tranche sizes remain to be determined.

The deal was expected to price later Monday; however, no formal price talk or terms have surfaced before press time, according to a market source.

The five-year notes were whispered in the high 5% yield context, and the eight-year notes were whispered in the mid 6% context, the source added.

Citigroup Global Markets Inc. is the left bookrunner for the Rule 144A and Regulation S with registration rights offer. J.P. Morgan Securities LLC and Wells Fargo Securities LLC are joint bookrunners.

US Bancorp, Comerica Securities, PNC Capital Markets LLC, Regions Securities LLC, Huntington Investment Co. and Fifth Third Securities Inc. are co-managers.

The Columbus, Ohio-based homebuilder plans to use the proceeds to fund the tender for its 8 5/8% senior notes due 2018 and redeem any notes not tendered at 104.313, with remaining proceeds to be used for general corporate purposes.

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