Newmark Homes starts roadshow Thursday for $350 million two-part note offering

By Paul A. Harris

St. Louis, Mo., June 4 - Newmark Homes Corp. will hit the road Thursday with a $350 million two-tranche Rule 144A offering, according to a syndicate source.

The deal will be comprised of $200 million of senior notes due 2010, non-callable for four years (Ba3), and $150 million of senior subordinated notes due 2012, non-callable for five years (B2).

The roadshow wraps up on June 13, with pricing expected on June 14.

Salomon Smith Barney is the bookrunner. Deutsche Bank Securities Inc. is joint lead. Fleet Securities is the co-manager.

Proceeds will be used to repay the outstanding debts of Newmark and Engle Holdings Corp., to repay a $72 million obligation of Technical Olympic, Inc., Newmark and Engle's parent, which it incurred in connection with Technical Olympic's acquisition of Engle in Nov. 2000, to defease or discharge Engle's 9¼% senior notes due 2008 and to pay expenses of the note offering.

Technical Olympic USA, Inc. has operated Newmark and Engle for the past two years, according to the source who added that the entities will be merged and will operate as Technical Olympic USA, Inc.

The issuer is a Sugarland Tex.-based homebuilder, serving Texas and Tennessee.

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