New Issue: CalAtlantic sells upsized $350 million 5% 10-year notes at par

By Paul A. Harris

Portland, Ore., June 6 – CalAtlantic Group, Inc. priced an upsized $350 million issue of 10-year senior bullet notes (Ba2/BB) at par to yield 5% on Tuesday, according to market sources.

The issue, which was priced on the investment-grade syndicate desk, was increased in size from $300 million.

The yield printed on the tight end of the 5 1/8% yield talk. Initial guidance was 5% to 5¼%.

Citigroup Global Markets Inc. was the lead bookrunner. J.P. Morgan Securities LLC, Mizuho Securities, Credit Suisse Securities (USA) LLC, BofA Merrill Lynch and Wells Fargo Securities LLC were the joint bookrunners.

The Irvine, Calif.-based homebuilder plans to use the proceeds for general corporate purposes, which may include the repayment of its convertible notes due 2032.

Issuer:	CalAtlantic Group, Inc.
Amount:	$350 million, increased from $300 million
Maturity:	June 15, 2027
Securities:	Senior notes
Lead bookrunner:	Citigroup Global Markets Inc.
Joint bookrunners:	J.P. Morgan Securities LLC, Mizuho Securities, Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, Wells Fargo Securities LLC
Co-managers:	BNP Paribas Securities Corp., SunTrust Robinson Humphrey Inc., Comerica Securities, U.S. Bancorp Investments Inc.
Coupon:	5%
Price:	Par
Yield:	5%
Spread:	286.2 bps
Call:	Make-whole call at Treasuries plus 50 bps until Dec. 15, 2026, then callable at par, otherwise non-callable
Trade date:	June 6
Settlement date:	June 9
Ratings:	Moody's: Ba2
	S&P: BB
Distribution:	SEC registered
Price talk:	5 1/8%
Marketing:	Quick to market

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