Published on 11/30/2017 in the Prospect News Investment Grade Daily.
New Issue: D.R. Horton prices $400 million 2.55% three-year senior notes at 70 bps over Treasuries
By Devika Patel
Knoxville, Tenn., Nov. 30 – D.R. Horton, Inc. priced $400 million of 2.55% three-year senior notes (Baa3/BBB-/BBB-) on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
The notes priced with a spread of Treasuries plus 70 basis points. The notes priced at 99.966 to yield 2.562%.
Citigroup Global Markets Inc., Mizuho Securities USA LLC, Wells Fargo Securities, LLC, J.P. Morgan Securities LLC and U.S. Bancorp Investments, Inc. were the bookrunners.
The issue will be guaranteed by all of D.R. Horton’s homebuilding subsidiaries.
The notes will have a 101% change-of-control put.
Proceeds will be used for general corporate purposes, which may include the early redemption of the company’s 3.625% senior notes due Feb. 15, 2018.
D.R. Horton is a homebuilding company based in Arlington, Texas.
| Issuer: | D.R. Horton, Inc.
|
| Amount: | $400 million
|
| Description: | Senior notes
|
| Maturity: | Dec. 1, 2020
|
| Bookrunners: | Citigroup Global Markets Inc., Mizuho Securities USA LLC, Wells Fargo Securities, LLC, J.P. Morgan Securities LLC and U.S. Bancorp Investments, Inc.
|
| Co-managers: | BB&T Capital Markets, BofA Merrill Lynch, PNC Capital Markets LLC, SunTrust Robinson Humphrey Inc., BNP Paribas Securities Corp., Comerica Securities, Inc., Samuel A. Ramirez & Co. Inc., Regions Securities LLC and TD Securities (USA) LLC
|
| Coupon: | 2.55%
|
| Price: | 99.966
|
| Yield: | 2.562%
|
| Spread: | Treasuries plus 70 bps
|
| Call feature: | Make-whole call at Treasuries plus 15 bps
|
| Change-of-control put: | 101%
|
| Trade date: | Nov. 29
|
| Settlement date: | Dec. 5
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
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