New Issue: Beazer Homes sells upsized $250 million 12% eight-year notes at 89.5 to yield 14.215%

By Paul A. Harris

St. Louis, Sept. 3 - Beazer Homes USA, Inc. priced an upsized $250 million issue of 12% eight-year senior secured notes (B1/CCC+/) at 89.50 to yield 14.215% on Thursday, according to a market source.

The Rule 144A with registration rights deal was upsized from a face amount of $160 million.

Citigroup Global Markets Inc. ran the books. Moelis was the co-manager.

Proceeds will be used to fund - or replenish cash that has been used to fund - open-market repurchases of the company's outstanding senior notes that it has made or that it has agreed to make since April 1, 2009.

Beazer is an Atlanta-based single-family homebuilder.

Issuer:	Beazer Homes USA, Inc.
Face amount:	$250 million, increased from $160 million
Proceeds:	$223.75 million
Maturity:	Oct. 15, 2017
Security description:	Senior secured notes
Bookrunner:	Citigroup Global Markets Inc.
Co-manager:	Moelis
Coupon:	12%
Price:	89.50
Yield:	14.215%
Call protection:	Callable after Oct. 15, 2012 at 106.0, 104.0, 102.0, par on and after Oct. 15, 2015
Trade date:	Sept. 3
Settlement date:	Sept. 11
Ratings:	Moody's: B1
	Standard & Poor's: CCC+
Distribution:	Rule 144A with registration rights

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