New York, April 24 - Lennar Corp. released slightly adjusted terms on its upsized $400 million issue of eight-year senior notes.
The Miami-based homebuilder's quickly shopped offering - upsized from the $250 million originally talked around the market - carried a 12¼% coupon and priced at 98.098 rather than the 98.123 originally circulated to yield 12 5/8%, the sources said. The bonds priced at a spread of 969.6 basis points over comparable Treasuries. The maturity date was changed to June 1, 2017 from May 15, 2017.
The bonds (B3/BB-), being sold under Rule 144A with registration rights and Regulations S, are non-callable for life, and carry a make-whole call provision at 50 bps over Treasuries.
Market sources said that Citigroup was the bookrunner on the issue.
Proceeds will be used for general corporate purposes, possibly including repayment or repurchase of the company's near-term debt maturities or of debt of its joint ventures that it has guaranteed.
| Issuer: | Lennar Corp.
|
| Issue: | Senior notes
|
| Amount: | $400 million (upsized from $250 million)
|
| Maturity: | June 1, 2017
|
| Bookrunner: | Citigroup
|
| Coupon: | 12¼%
|
| Price: | 98.098
|
| Yield: | 12 5/8%
|
| Spread: | 969.60 basis points
|
| Call protection: | Make-whole provision at Treasuries plus 50 bps, otherwise non-callable for life of issue
|
| Pricing date: | April 23
|
| Settlement date: | April 30
|
| Ratings: | Moody's: B3
|
| Standard & Poor's BB-
|
| Distribution: | Rule 144A with registration rights/Regulation S
|
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