CalAtlantic to sell $200 million two-part bullet add-on on Thursday

By Paul A. Harris

Portland, Ore., March 30 – CalAtlantic Group, Inc. plans to price $200 million of senior notes on Thursday by means of tapping two of its existing bullet issues, according to an informed source.

The deal includes an add-on to the 5 7/8% senior notes due Nov. 1, 2024 that were originally issued by Standard Pacific Corp. Those notes become callable after May 15, 2024 at par but are otherwise non-callable. The initial price talk is 103 to 104. The original $300 million issue priced at par in November 2014.

The deal also includes an add-on to the CalAtlantic Group 5¼% senior notes due June 1, 2026, which are callable after Dec. 1, 2025 at par but otherwise non-callable. The initial price talk is 98. The original $300 million issue priced at par on May 25, 2016.

Tranche sizes remain to be determined.

Mizuho Securities USA Inc. is the bookrunner for the public offering.

The Irvine, Calif.-based home builder plans to use the proceeds to refinance its 8.4% senior notes due May 2017 and for general corporate purposes, which may include land acquisition and development, home construction, repurchases of common stock and debt repayment.

CalAtlantic Group was formed as a combination of Standard Pacific Corp. and Ryland Group, Inc.

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