New Issue: Beazer Homes sells upsized $325 million 5¾% five-year bullet at par to yield 5.745%

By Paul A. Harris

Portland, Ore., April 3 - Beazer Homes USA, Inc. priced an upsized $325 million issue of non-callable 5¾% five-year senior notes (Caa2/CCC/) at par to yield 5.745% on Thursday, according to a syndicate source.

The deal was upsized from $300 million.

The yield printed slightly below the midpoint of yield talk set in the 5¾% area.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., RBS Securities Inc. and UBS Investment Bank were the joint bookrunners.

The Atlanta-based homebuilder plans to use the proceeds to fund or replenish cash that it expects to use to fund the redemption of $298 million of its 9 1/8% senior notes due 2018.

Issuer:	Beazer Homes USA, Inc.
Amount:	$325 million, increased from $300 million
Maturity:	June 15, 2019
Securities:	Senior notes
Bookrunners:	Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., RBS Securities Inc., UBS Investment Bank
Coupon:	5¾%
Price:	Par
Yield:	5.745%
Spread:	396 bps
Price talk:	5¾% area
Call protection:	Non-callable until three months prior to maturity, then at par
Equity clawback:	35% at 105.75 until June 15, 2019
Change-of-control put:	101%
Trade date:	April 3
Settlement date:	April 8
Ratings:	Moody's: Caa2
	Standard & Poor's: CCC
Distribution:	Rule 144A and Regulation S with registration rights
Marketing:	Quick to market

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