New Home markets $250 million five-year notes; initial talk 7½%-7¾%

By Paul A. Harris

Portland, Ore., Oct. 13 – New Home Co., Inc. is in the market with a $250 million offering of five-year senior notes (B3/B-), according to market sources.

Initial talk has the Rule 144A and Regulation S deal coming to yield in the 7½% to 7¾% area, a trader said.

Pricing is expected Thursday.

J.P. Morgan Securities LLC is leading the deal.

The notes come with two years of call protection.

The Aliso Viejo, Calif.-based home builder plans to use the proceeds, together with cash on hand, to fund the redemption of all of its outstanding 7¼% senior notes due 2022.

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