By Paul A. Harris
Portland, Ore., March 12 – Beazer Homes USA, Inc. priced a $250 million issue of seven-year senior notes (B1/B+) at par to yield 7½% in a Tuesday drive-by, according to market sources.
The yield printed at the tight end of the 7½% to 7¾% yield talk. Initial guidance was 7¾% to 7 7/8%.
J.P. Morgan Securities LLC was the lead.
Demand for Beazer’s new notes was heard to be 3.5-times deal size, according to a bond trader, who had them par ½ bid, 101 offered in late Tuesday afternoon trading.
The Atlanta-based home builder plans to use the proceeds to finance the redemption of its 6¾% senior notes due March 15, 2025, of which $197.9 million are outstanding, with any remaining proceeds to be used for general corporate purposes.
| Issuer: | Beazer Homes USA, Inc.
|
| Amount: | $250 million
|
| Issue: | Senior notes
|
| Maturity: | March 15, 2031
|
| Lead: | J.P. Morgan Securities LLC
|
| Coupon: | 7½%
|
| Price: | Par
|
| Yield: | 7½%
|
| Spread: | 334 bps
|
| First call: | March 15, 2027 at 103.75
|
| Trade date: | March 12
|
| Settlement date: | March 15
|
| Ratings: | Moody’s: B1
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 7½% to 7¾%
|
| Marketing: | Drive-by
|
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