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Meritage Homes gets tenders for $248.1 million 7% notes, 6¼% notes, will call remaining 7% notes
By Angela McDaniels
Tacoma, Wash., May 4 - Meritage Homes Corp. said it received tenders for approximately $108.1 million of its 7% senior notes due May 1, 2014 and approximately $140 million of its 6¼% senior notes due 2015 during tender offers that expired at midnight ET on May 3.
In the first offer, the company offered to purchase any and all of the $130 million 7% notes.
In the second offer, the company offered to purchase up to $65 million of the $350 million 6¼% notes in a modified Dutch auction.
For each $1,000 principal amount, the purchase price is $1,025 for the 7% notes and $990 for the 6¼% notes. These prices include an early tender premium of $20 for each note tendered by midnight ET on April 19.
Holders will also receive accrued interest up to but excluding the settlement date.
The company plans to redeem the 7% notes that remain outstanding following the settlement date.
The acceptable bid range for the 6¼% notes was $960 to $1,000.
Because the second offer is oversubscribed, Meritage will first accept for purchase all notes tendered at prices below $990 and then notes tendered at the purchase price on a prorated basis.
The offers began April 6 and were conditioned on the completion by Meritage of a private offering of at least $200 million principal amount of unsecured senior debt securities.
Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106, Attn. liability management group) and J.P. Morgan Securities Inc. were the dealer managers. Global Bondholder Services Corp. (866 804-2200 or 212 430-3774) was the depositary and information agent.
Meritage is a homebuilder based in Scottsdale, Ariz.
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