By Paul A. Harris
Portland, Ore., Jan. 30 - D.R. Horton, Inc. priced $700 million of non-callable senior notes (Ba2/BB-/) in two restructured tranches on Wednesday, according to market sources.
The deal included a $400 million tranche of five-year notes, which were priced at par to yield 3 5/8%.
The yield printed at the wide end of the 3½% to 3 5/8% yield talk. The tenor of the 3 5/8% notes was reduced to five years from seven years.
In addition the Fort Worth, Texas-based homebuilder priced a $300 million tranche of 10-year notes at par to yield 4¾%.
The yield printed at the wide end of the 4½% to 4¾% yield talk. The tenor of the 4¾% notes was reduced to 10 years from 12 years.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBS Securities Inc., UBS Securities LLC and Wells Fargo Securities LLC were the joint bookrunners for the quick-to-market deal.
Proceeds will be used for general corporate purposes.
| Issuer: | D.R. Horton, Inc.
|
| Amount: | $700 million
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBS Securities Inc., UBS Securities LLC, Wells Fargo Securities LLC
|
| Change-of-control put: | 101%
|
| Trade date: | Jan. 30
|
| Settlement date: | Feb. 5
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB-
|
| Distribution: | SEC registered
|
| Marketing: | Quick to market
|
|
|
| Five-year notes
|
| Amount: | $400 million
|
| Maturity: | Feb. 15, 2018 (tenor decreased from seven years)
|
| Coupon: | 3 5/8%
|
| Price: | Par
|
| Yield: | 3 5/8%
|
| Spread: | 275 bps
|
| Call protection: | Non-callable
|
| Price talk: | 3½% to 3 5/8%
|
|
|
| 10-year notes
|
| Amount: | $300 million
|
| Maturity: | Feb. 15, 2023 (tenor decreased from 12 years)
|
| Coupon: | 4¾%
|
| Price: | Par
|
| Yield: | 4¾%
|
| Spread: | 276 bps
|
| Call protection: | Non-callable
|
| Price talk: | 4½% to 4¾%
|
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