By Paul A. Harris
St. Louis, Mo., June 14 -Technical Olympic USA, Inc. priced a $350 million two-tranche Rule 144A offering on Friday, according to a syndicate source.
The $200 million of senior notes due July 1, 2010 (Ba3/B+) priced at par to yield 9%. Price talk was 8½%-8 ¾%.
The $150 million of senior subordinated notes due July 1, 2012 (B2/B-) priced at par to yield 10 3/8%. Price talk was 75 basis points area over the yield of the senior notes.
Salomon Smith Barney was the bookrunner. Deutsche Bank Securities Inc. was the joint lead. Fleet Securities was co-manager.
Proceeds will be used to repay a $72 million obligation of Technical Olympic, Inc., to defease or discharge Engle's 9¼% senior notes due 2008, and to pay expenses of the note offering.
The issuer is a Sugarland Tex.-based homebuilder, serving Texas and Tennessee.
Common terms
Issuer: Technical Olympic USA, Inc.
Bookrunner: Salomon Smith Barney
Settlement date: June 25, 2002.
Senior notes
Amount: $200 million
| Maturity: | July 1, 2010
|
| Type: | Senior notes
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Price talk: | 8½%-8¾%.
|
| Spread: | 451 basis points
|
| Call features: | Callable on July 1, 2006 at 104.5, 102.25, par on July 1, 2008 and thereafter
|
| Equity clawback: | Until July 1, 2005 for 35% at 109.0
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: B+
|
| Rule 144A CUSIP: | 878483AA4
|
|
|
| Senior subordinated notes
|
| Amount: | $150 million
|
| Maturity: | July 1, 2012
|
| Type: | Senior subordinated notes
|
| Coupon: | 10 3/8%
|
| Price: | Par
|
| Yield: | 10 3/8%
|
| Spread: | 557 basis points
|
| Price talk: | 75 basis points area over the senior notes.
|
| Call features: | Callable on July 1, 2007 at 105.188, 103.458, 101.729, par on July 1, 2010 and thereafter
|
| Equity clawback: | Until July 1, 2005 for 35% at 110.375
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B-
|
| Rule 144A CUSIP: | 878483AB2
|
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