New Home to price $50 million tap of 7¼% notes due 2022 on Monday

By Paul A. Harris

Portland, Ore., May 1 – New Home Co., Inc. plans to price a $50 million tack-on to its 7¼% senior notes due April 1, 2022 on Monday following a mid-morning conference call with investors, according to market sources.

Initial price talk is in the 102.5 area, a trader said.

Credit Suisse Securities (USA) LLC is the lead left bookrunner for the Rule 144A and Regulation S with registration rights offering. Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the joint bookrunners.

The notes become callable on Oct. 1, 2019 at 103.625 and feature a 35% equity clawback at 107.25 until Oct. 1, 2019 and a 101% poison put.

The Aliso Viejo, Calif.-based homebuilder plans to use the proceeds for working capital, for land acquisitions and for general corporate purposes.

The original $250 million issue priced at 98.961 to yield 7½% on March 10, 2017.

The tack on notes will immediately become fungible with original notes.

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