Published on 3/10/2017 in the Prospect News High Yield Daily.
New Issue: New Home sells $250 million 7¼% five-year notes at 98.961 to yield 7½%
By Paul A. Harris
Portland, Ore., March 10 – The New Home Co. priced a $250 million issue of 7¼% five-year senior notes (B3/B-) at 98.961 to yield 7½% on Friday, according to a syndicate source.
The yield printed on top of yield talk in the 7½% area.
Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and U.S. Bancorp Investments Inc. were the joint bookrunners.
The Aliso Viejo, Calif.-based homebuilder plans to use the proceeds to repay its existing revolving credit facility and for general corporate purposes.
| Issuer: | The New Home Co. Inc.
|
| Face amount: | $250 million
|
| Proceeds: | $247,402,500
|
| Maturity: | April 1, 2022
|
| Securities: | Senior notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc.
|
| Coupon: | 7¼%
|
| Price: | 98.961
|
| Yield: | 7½%
|
| Spread: | 535 bps
|
| First call: | Oct. 1, 2019 at 103.625
|
| Equity clawback: | 35% at 107.25 until Oct. 1, 2019
|
| Trade date: | March 10
|
| Settlement date: | March 17
|
| Ratings: | Moody's: B3
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 7½% area
|
| Marketing: | Roadshow
|
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