By Paul A. Harris
Portland, Ore., Sept. 25 – Beazer Homes USA, Inc. priced an upsized $400 million issue of 10-year senior notes (B3/B-/B-) at par to yield 5 7/8% on Monday, according to a syndicate source.
The issue size was increased from $300 million.
The yield printed at the tight end of yield talk in the 6% area. Initial price talk is in the low 6% area.
Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Goldman Sachs & Co. were the joint bookrunners.
The Atlanta-based single-family homebuilder plans to use the proceeds to partially refinance its existing senior notes due 2019 and 2023.
| Issuer: | Beazer Homes USA, Inc.
|
| Amount: | $400 million, increased from $300 million
|
| Maturity: | Oct. 15, 2027
|
| Securities: | Senior notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co.
|
| Coupon: | 5 7/8%
|
| Price: | Par
|
| Yield: | 5 7/8%
|
| Spread: | 369 bps
|
| First call: | Callable on Oct. 15, 2022 at 102.938
|
| Equity clawback: | 35% at 105.875 until Oct. 15, 2020
|
| Trade date: | Sept. 25
|
| Settlement date: | Oct. 10
|
| Ratings: | Moody's: B3
|
| S&P: B-
|
| Fitch: B-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 6% area
|
| Marketing: | Quick to market
|
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