By Paul A. Harris
Portland, Ore., March 19 – Landsea Homes Corp. priced a $300 million issue of five-year senior notes (B/B+) at par to yield 8 7/8% on Tuesday, according to market sources.
The yield printed at the tight end of the 8 7/8% to 9% yield talk. Initial guidance was in the low-to-mid 9% area.
Demand was two-times deal size on Tuesday afternoon, according to a trader, who remarked that it was a decent book that contained some real-money accounts.
BofA Securities Inc. was the left bookrunner, and U.S. Bancorp Investments Inc. was the joint bookrunner.
The Dallas-based home builder plans to use the proceeds to pay down its revolving credit facility.
| Issuer: | Landsea Homes Corp.
|
| Amount: | $300 million
|
| Issue: | Senior notes
|
| Maturity: | April 1, 2029
|
| Left bookrunner: | BofA Securities Inc.
|
| Joint bookrunner: | U.S. Bancorp Investments Inc.
|
| Co-managers: | B. Riley Securities Inc., BTIG LLC, East West Markets, Texas Capital and Wedbush Securities Inc.
|
| Coupon: | 8 7/8%
|
| Price: | Par
|
| Yield: | 8 7/8%
|
| Spread: | 454 bps
|
| First call: | April 1, 2026 at 104.438
|
| Trade date: | March 19
|
| Settlement date: | April 1
|
| Ratings: | S&P: B
|
| Fitch: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8 7/8% to 9%
|
| Marketing: | Roadshow
|
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