Landsea Homes talks $300 million five-year notes to yield 8 7/8%-9%; books close Tuesday

By Paul A. Harris

Portland, Ore., March 19 – Landsea Homes Corp. talked its $300 million offering of senior notes due 2029 (B/B) to yield 8 7/8% to 9%, according to market sources.

Official talk comes well inside of initial guidance in the low-to-mid 9% area.

Books close at 1 p.m. ET on Tuesday.

The offering was heard to be playing to $500 million of demand on Tuesday morning, according to a bond trader, who added that the offering could upsize to $350 million.

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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