By Paul A. Harris
Portland, Ore., Feb. 22 – New Home Co. Inc. priced a $35 million add-on to its 7¼% senior notes due Oct. 15, 2025 (B3/B-) at 103.25 to yield 6.427% in a Monday drive-by, according to market sources.
The issue price came in the middle of the 103 to 103.5 price talk but cheap to initial guidance of 103.75 to 104.5.
J.P. Morgan Securities LLC was at the left of a syndicate of bookrunners that also included BNP Paribas Securities Corp., Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC.
The Irvine, Calif.-based home builder plans to use proceeds from the Rule 144A and Regulation S add-on for general corporate purposes, including land acquisition, investment in new markets and working capital.
| Issuer: | New Home Co. Inc.
|
| Amount: | $35 million
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| Maturity: | Oct. 15, 2025
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| Security description: | Add-on to 7¼% senior notes due Oct. 15, 2025
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| Bookrunners: | J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC
|
| Coupon: | 7¼%
|
| Price: | 103.25
|
| Yield: | 6.427%
|
| Spread: | 590 bps
|
| Trade date: | Feb. 22
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| Settlement date: | Feb. 24
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| Ratings: | Moody's: B3
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| S&P: B-
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 103 to 103.5
|
| Marketing: | Drive-by
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| Original issue: | $250 million priced in October 2020
|
| Fungibility: | Add-on notes will become fungible with the original notes
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