Lennar may redeem 2.75% convertibles with proceeds from new notes

New York, Oct. 29 – Lennar Corp. said it may redeem its 2.75% convertible senior notes due 2020 in full or part using proceeds from an offering of new senior notes.

The company announced a $350 million of high-yield notes due in 2023 on Thursday morning.

Proceeds will be used for general corporate purposes which, the company said in a 424B5 filing with the Securities and Exchange Commission, may include the redemption or settlement of the convertibles in full or part. Proceeds may also be used to repay other debt.

Lennar noted that the 2.75% convertibles become callable on Dec. 20 at par plus accrued interest.

There is currently $274.28 million of the convertibles outstanding.

Lennar is a Miami-based homebuilder.

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