New Home plans new revolver with buyout by Apollo Global

By Sara Rosenberg

New York, July 23 – The New Home Co. has received a commitment for a revolving credit facility in connection with its proposed acquisition by Apollo Global Management Inc., according to a news release.

Other than the revolver commitment, no incremental debt is expected to be raised in connection with the transaction, the release said.

Equity for the buyout will be provided by the Apollo Funds.

Under the agreement, New Home is being purchased for $9.00 per share. The transaction has an enterprise value of about $338 million.

Closing is expected in the second half of the company’s fiscal year, subject to customary conditions and the tender of a majority of shares.

Citigroup Global Markets Inc. is acting as exclusive financial adviser to New Home. J.P. Morgan Securities LLC is acting as financial adviser to the Apollo Funds.

New Home is a Scottsdale, Ariz.-based new generation homebuilder focused on the design, construction and sale of homes in markets across California, Arizona and Colorado.

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