Mattamy launches tender offer for two series of 6½% notes due 2025

By Marisa Wong

Los Angeles, Feb. 20 – Mattamy Group Corp. said it has begun a cash tender offer to purchase any and all of its outstanding $500 million 6½% senior notes due 2025 (Cusips: 57701RAH5, C5400RAE2) and C$225 million 6½% senior notes due 2025 (Cusips: 57701RAG7, 57701RAF9).

The tender offer will expire at 5 p.m. ET on March 2.

The consideration offered per $1,000 principal amount of the U.S. notes will be calculated based on a fixed spread of 50 basis points plus the applicable yield to maturity based on the bid-side price of the 1 3/8% U.S. Treasury due Sept. 30, 2020.

The consideration offered per C$1,000 principal amount of the Canadian notes will be based on a fixed spread of 50 bps plus the applicable yield to maturity based on the bid-side price of the ¾% Government of Canada bond due Sept. 1, 2020.

Pricing will be determined at 2 p.m. ET on March 2.

Holders will also receive a cash amount equal to the accrued interest from the last interest payment date up to but excluding the settlement date.

Tenders may be withdrawn at any time before the earlier of the expiration time and, if the offer is extended, the 10th business day after the start of the offer.

The tender offer is subject to a financing condition but is not conditioned on any minimum amount of notes being tendered, and the completion of the offer with respect to one series of the notes is not conditioned on completion of the offer with respect to the other series.

Mattamy said it intends to issue on Thursday conditional notices of redemption for notes that are not accepted for purchase in the tender offer. The company currently expects the redemption date for the notes to be March 21.

J.P. Morgan Securities LLC (212 834-2045 or 866 834-4666) and RBC Capital Markets, LLC (212 618-7843 or 877 381-2099 for U.S. or 416 842-6311 for Canada) are dealer managers for the tender offer with respect to the dollar notes. J.P. Morgan Securities Canada Inc. and RBC Dominion Securities Inc. are dealer managers with respect to the Canadian notes.

D.F. King & Co., Inc. (212 269-5550 for banks and brokers or 800 283-2170 or via mattamy@dfking.com) is information agent and tender agent for the U.S. notes and TSX Trust Co. is tender agent for the Canadian notes.

Mattamy is a Toronto-based homebuilder.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.