By Paul A. Harris
Portland, Ore., Feb. 6 – Shea Homes LP priced an upsized $450 million issue of eight-year notes (B1/BB-) at par to yield 4¾% in a Thursday drive-by, according to a market source.
The issue size increased from $375 million.
The yield printed well inside of the 5% to 5¼% initial guidance.
The deal was heard to have been driven, in part, by $175 million of reverse inquiry, a trader said.
The Walnut, Calif., home building company plans to use the proceeds to fund the tender for $375 million of Shea Homes LP/Shea Homes Funding Corp. 5 7/8% senior notes due 2023.
| Issuer: | Shea Homes LP
|
| Amount: | $450 million, increased from $375 million
|
| Tenor: | Eight years
|
| Securities: | Notes
|
| Lead bookrunner: | J.P. Morgan Securities LLC
|
| Coupon: | 4¾%
|
| Price: | Par
|
| Yield: | 4¾%
|
| Call protection: | Three years
|
| Trade date: | Feb. 6
|
| Ratings: | Moody's: B1
|
| S&P: BB-
|
| Marketing: | Drive-by
|
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