Published on 9/30/2020 in the Prospect News Investment Grade Daily.
New Issue: D.R. Horton details $500 million sale of 1.4% senior notes due 2027
By Devika Patel
Knoxville, Tenn., Sept. 30 – D.R. Horton, Inc. offered further details, including the price, spread and yield, about a $500 million sale of 1.4% senior notes due Oct. 15, 2027 (Baa2/BBB/BBB) that priced on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The notes priced at 99.713 to yield 1.443%, with a spread of Treasuries plus 100 basis points.
Initial price talk was in the Treasuries plus 125 bps to 130 bps area.
J.P. Morgan Securities LLC, Mizuho Securities USA Inc., U.S. Bancorp Investments Inc., Citigroup Global Markets Inc., Wells Fargo Securities LLC, BofA Securities, Inc., PNC Capital Markets LLC, TD Securities (USA) LLC and Truist Securities, Inc. were the bookrunners.
The issue will be guaranteed by all of D.R. Horton’s homebuilding subsidiaries.
The Arlington, Tex.-based homebuilder plans to use proceeds from the offering for general corporate purposes.
| Issuer: | D.R. Horton, Inc.
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| Guarantors: | D.R. Horton homebuilding subsidiaries
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| Amount: | $500 million
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| Description: | Senior notes
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| Maturity: | Oct. 15, 2027
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| Bookrunners: | J.P. Morgan Securities LLC, Mizuho Securities USA Inc., U.S. Bancorp Investments Inc., Citigroup Global Markets Inc., Wells Fargo Securities LLC, BofA Securities, Inc., PNC Capital Markets LLC, TD Securities (USA) LLC and Truist Securities, Inc.
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| Co-managers: | BNP Paribas Securities Corp., Citizens Capital Markets Inc., Comerica Securities Inc., Regions Securities LLC, Samuel A. Ramirez & Co. Inc. and WoodRock Securities, LP
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| Coupon: | 1.4%
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| Price: | 99.713
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| Yield: | 1.443%
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| Spread: | Treasuries plus 100 bps
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| Call: | Make-whole call at Treasuries plus 15 bps until Aug. 15, 2027, then a par call
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| Trade date: | Sept. 29
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| Settlement date: | Oct. 2
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| Ratings: | Moody’s: Baa2
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| S&P: BBB
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| Fitch: BBB
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| Distribution: | SEC registered
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| Price talk: | Treasuries plus 125 bps-130 bps area
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