By Paul A. Harris
Portland, Ore., March 27 – New Home Co. Inc. priced a downsized $300 million issue of 5.5-year senior notes (B2/B-) at par to yield 9¼% on Wednesday, according to market sources.
The issue size decreased from $325 million.
The coupon and price both came on top of talk. Early guidance had the notes coming to yield in the 8¾% to 9% area.
J.P. Morgan Securities LLC was the lead.
Proceeds will be used to refinance the company’s 7¼% senior notes due 2025 and 8¼% senior notes due 2027.
New Home is an Irvine, Calif.-based homebuilder.
| Issuer: | New Home Co. Inc.
|
| Amount: | $300 million, decreased from $325 million
|
| Issue: | Senior notes
|
| Maturity: | Oct. 1, 2029
|
| Lead: | J.P. Morgan Securities LLC
|
| Coupon: | 9¼%
|
| Price: | Par
|
| Yield: | 9¼%
|
| Spread: | 503 bps
|
| First call: | Oct. 1, 2026 at 104.625
|
| Trade date: | March 27
|
| Settlement date: | April 4
|
| Ratings: | Moody’s: B2
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 9¼% at par
|
| Marketing: | Roadshow
|
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