Dream Finders Homes starts roadshow for $300 million five-year notes, initial talk high-8% area

By Paul A. Harris

Portland, Ore., Aug. 7 – Dream Finders Homes, Inc. started a roadshow on Monday for a $300 million offering of senior notes due 2028 (//BB-), according to market sources.

The deal, scheduled to kick off on an investor conference call set to begin at noon ET Monday, is in the market with initial guidance in the high-8% area, according to a sellside source.

The Rule 144A and Regulation S five-year notes are subject to their first call after two years at par plus 50% of the coupon. The notes feature a 40% equity clawback at par plus the full coupon during the non-call period, and a 101% poison put.

BofA Securities, Inc., Wedbush Morgan Securities Inc., BMO Capital Markets Corp. and Goldman Sachs & Co. LLC are the joint bookrunners.

Zelman Partners LLC is the lead manager.

Texas Capital, WauBank and Zions First National Bank, Capital Markets are the co-managers.

The Jacksonville, Fla.-based homebuilder plans to use the proceeds to repay a portion of debt outstanding under its amended and restated credit agreement, and for general corporate purposes.

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