Moody’s rates New Home notes B3

Moody’s Investors Service said it assigned a B3 rating to the New Home Co. Inc.’s proposed $250 million of senior unsecured notes due 2025. New Home’s other ratings and stable outlook remain unchanged.

The B3 assigned to the notes, at the same level as the corporate family rating, reflects that this class of debt represents the preponderance of debt in the capital structure, the agency said.

The proceeds and cash on hand will be used to redeem the remaining balance on the company’s 7¼% senior unsecured notes due 2022 of $292.3 million.

“Pro forma for the transaction, adjusted debt to total capitalization at June 30, 2020, would decline to 57.3% from 60.6% and the company’s debt maturity profile will improve,” Moody’s said in a press release.

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