By Paul A. Harris
St. Louis, Dec. 8 - D.R. Horton Inc. priced an upsized, quick-to-market $300 million issue of 11-year senior notes (Ba1/BB+) Wednesday at 99.107 with a 5 5/8% coupon to yield 5.734%, according to market sources.
Price talk was Treasuries plus 160 basis points.
Citigroup ran the books for the off-the-shelf issue.
Proceeds will be used for general corporate purposes, including the repayment of existing debt under the company's homebuilding line of credit.
D.R. Horton is an Arlington, Texas-based home builder principally for the entry-level and first-time move-up markets.
| Issuer: | D.R. Horton Inc.
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| Amount: | $300 million (increased from $250 million)
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| Maturity: | Jan. 15, 2016
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| Security description: | Senior notes
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| Bookrunner: | Citigroup
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| Coupon: | 5 5/8%
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| Price: | 99.107
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| Yield: | 5.734%
|
| Spread: | 160 basis points
|
| Call protection: | Make-whole call at Treasuries plus 30 basis points
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| Trade date: | Dec. 8
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| Settlement date: | Dec. 15
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BB+
|
| Price talk: | Treasuries plus 160 basis points
|
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