Landsea Homes plans to sell $300 million five-year senior notes; initial talk low-to-mid 9% area

By Paul A. Harris

Portland, Ore., March 18 – Landsea Homes Corp. set a Monday-Tuesday roadshow for a $300 million offering of senior notes due 2029 (//B), according to market sources.

The deal was set to kick off on a late Monday morning conference call with investors.

Initial talk has the notes coming to yield in the low-to-mid 9% area, according to a trader.

The Rule 144A and Regulation S for life five-year notes become subject to an initial call after two years at par plus 50% of the coupon. They feature a 40% equity clawback at par plus the full coupon during the non-call period and have a 101 poison put.

BofA Securities Inc. is the left bookrunner. U.S. Bancorp Investments Inc. is the joint bookrunner.

B. Riley Securities Inc., BTIG LLC, East West Markets, Texas Capital and Wedbush Securities Inc. are the co-managers.

The Dallas-based home builder plans to use the proceeds to pay down its revolving credit facility.

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