Moody’s rates M/I Homes notes B1

Moody’s Investors Service said it assigned a B1 rating to M/I Homes, Inc.’s proposed $350 million of senior unsecured notes due 2028. All the company’s other ratings remain unchanged. The stable outlook is also unchanged.

The new notes are being issued to refinance M/I Homes’ $300 million 6¾% senior notes due 2021 in their entirety, which will be completed through a redemption. The rest of the offering proceeds will be used to reduce revolver borrowings under the company’s $500 million unsecured credit facility expiring in 2021. The new notes will be guaranteed by all of M/I Homes’ subsidiaries that guarantee its 2025 unsecured notes and its revolver.

Pro forma credit metrics, including debt to book capitalization of 45% and homebuilding interest coverage of 4x, are little changed from their respective levels as of Sept. 30, upon this refinancing.

The transaction enhances the company’s liquidity by extending its maturity profile and increasing availability under its revolver to about $290 million on a pro forma basis, the agency said.

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