By Paul A. Harris
St. Louis, May 4 - Beazer Homes USA, Inc. priced a $300 million issue of eight-year senior notes (Caa2/CCC/) at par to yield 9 1/8% on Tuesday, according to an informed source.
The yield printed in the middle of the 9% to 9¼% price talk.
Credit Suisse and Citigroup Global Markets Inc. were the joint bookrunners for the quick-to-market deal.
The Atlanta-based homebuilder will use the proceeds to repurchase its 8 3/8% senior notes due 2012 and its 4 5/8% senior convertible notes due 2024. The convertibles are putable in 2011.
| Issuer: | Beazer Homes USA, Inc.
|
| Amount: | $300 million
|
| Maturity: | June 15, 2018
|
| Securities: | Senior notes
|
| Bookrunners: | Credit Suisse, Citigroup Global Markets Inc.
|
| Joint lead manager: | Deutsche Bank Securities Inc.
|
| Co-manager: | Moelis & Co.
|
| Coupon: | 9 1/8%
|
| Price: | Par
|
| Yield: | 9 1/8%
|
| Spread: | 585 bps
|
| Call protection: | Make-whole at Treasuries plus 50 bps for the first four years and then callable at a premium
|
| Trade date: | May 4
|
| Settlement date: | May 20
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: CCC
|
| Distribution: | SEC registered
|
| Price talk: | 9% to 9¼%
|
| Marketing: | Quick-to-market
|
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