By Paul Deckelman and Aleesia Forni
New York, July 31 - D.R. Horton Inc. priced $400 million of 5¾% senior notes (Ba2/BB/BB) due 2023 at par on Wednesday, high-yield syndicate sources said.
Deutsche Bank Securities Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, RBS Securities Inc. and Wells Fargo Securities LLC were the joint bookrunners for the quick-to-market offering, which was registered with the Securities and Exchange Commission.
The notes are non-callable, except via a make-whole call at 50 basis points over Treasuries plus accrued and unpaid interest, until May 15, 2023 - three months before their scheduled maturity in August of 2023 - and can be redeemed at par any time after that.
There is a change-of-control put at 101%.
D.R. Horton, a Fort Worth, Texas-based homebuilder, plans to use the proceeds from the bond deal for general corporate purposes, which could include providing additional working capital to D.R. Horton's business operations; acquiring and developing land; constructing new homes; acquiring companies in homebuilding or other businesses; repaying or repurchasing existing debt; or purchasing other investments.
| Issuer: | D.R. Horton, Inc.
|
| Amount: | $400 million
|
| Description: | Senior notes
|
| Maturity: | Aug. 15, 2023
|
| Bookrunners: | Deutsche Bank Securities Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, RBS Securities Inc., Wells Fargo Securities, LLC
|
| Coupon: | 5¾%
|
| Price: | Par
|
| Yield: | 5¾%
|
| Spread: | 310 bps over 1¾% U.S. Treasury due May 15, 2023
|
| Call protection: | Make-whole call at T+50 bps prior to May 15, 2023; callable thereafter at par
|
| Change-of-control put: | At 101%
|
| Trade date: | July 31
|
| Settlement date: | Aug. 5
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB
|
| Fitch: BB
|
| Distribution: | SEC registered
|
| Marketing: | Quick to market
|
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