Beazer Homes talks $300 million 5.5-year notes to yield 8¾%-9%

By Paul A. Harris

Portland, Ore., Sept. 8 – Beazer Homes USA, Inc. talked its $300 million offering of senior notes due March 2022 (B+/B+) to yield 8¾% to 9%, a syndicate source said.

Books close at 1 p.m. ET on Thursday, and the Rule 144A and Regulation S with registration rights offering is set to price thereafter.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Goldman Sachs & Co. are the joint bookrunners.

The notes become callable after 2.5 years at par plus 50% of the coupon and feature a 35% equity clawback during the non-call period and a 101% poison put.

The Atlanta-based single-family homebuilder plans to use the proceeds to refinance its 6 5/8% second-lien notes due 2018.

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