Miller Homes sets initial guidance in £815 million equivalent two-part secured notes offering

By Paul A. Harris

Portland, Ore., April 26 – Miller Homes set initial guidance in its £815 million equivalent offering of senior secured notes (B1/B+/BB-), which is coming in two benchmark tranches.

The Rule 144A and Regulation S deal features a sterling-denominated tranche of seven-year non-call three-year fixed-rate notes with initial guidance in the high 7% area and a euro-denominated tranche of six-year non-call one-year floating-rate notes with initial guidance in the Euribor plus 525 basis points area, no Euribor floor, at OID 98.

Tranche sizes remain to be determined.

Joint global coordinator Barclays will bill and deliver for the floating-rate notes.

HSBC, which is also a joint global coordinator, will bill and deliver for the fixed-rate notes.

Credit Suisse, Deutsche Bank, Goldman Sachs International, Lloyds Bank Corporate Markets, RBC Capital Markets and Standard Chartered Bank are the joint bookrunners.

The issuing entity will be Castle UK Finco plc, the indirect parent of Miller Homes.

The Edinburgh-based home builder plans to use the proceeds to pay off the bridge loan put in place to fund the buyout of Miller Homes by Apollo and Miller Homes management from Bridgepoint Group plc.

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