Lennar updates offer to exchange eight series for CalAtlantic notes

By Susanna Moon

Chicago, Feb. 16 – Lennar Corp. announced the results of the offer to exchange eight series of notes issued by CalAtlantic Group, Inc. for up to $3 billion of new notes issued by Lennar and cash.

The exchange offers ended at 12:01 a.m. ET on Feb. 16. The offers began Jan. 19.

As announced, the total exchange value per $1,000 principal amount of existing CalAtlantic notes is $1,000 principal amount of new Lennar notes with the same respective coupon and maturity and $1.00 in cash.

The total exchange amount included an early tender premium of $30 principal amount of Lennar notes for each $1,000 principal amount of CalAtlantic notes tendered for exchange by 5 p.m. ET on Feb. 1, the early tender date.

The final tenders are as follows:

• $485,627,000, or 84.46%, of $575 million outstanding 8 3/8% senior notes due May 15, 2018;

• $267,708,000, or 89.24%, of $300 million outstanding 6 5/8% senior notes due May 1, 2020;

• $397,611,000, or 99.4%, of $400 million outstanding 8 3/8% senior notes due Jan. 15, 2021;

• $291,966,000, or 97.32%, of $300 million outstanding 6¼% senior notes due Dec. 15, 2021;

• $240,808,000, or 96.32%, of $250 million outstanding 5 3/8% senior notes due Oct. 1, 2022;

• $421,443,000, or 99.16%, of $425 million outstanding 5 7/8% senior notes due Nov. 15, 2024;

• $395,535,000, or 98.88%, of $400 million outstanding 5¼% senior notes due June 1, 2026; and

• $347,343,000, or 99.24%, of $350 million outstanding 5% senior notes due June 15, 2027.

The company said on Feb. 13 that it received no additional tenders in the exchange offer.

When the merger became effective on Monday, the company issued $2,847,917,000 exchange notes for the early tenders in the following amounts:

• $485,609,000 of 8 3/8% notes due May 15, 2018;

• $267,708,000 of 6 5/8% notes due May 1, 2020;

• $397,606,000 of 8 3/8% notes due Jan. 15, 2021;

• $291.96 million of 6¼% notes due Dec. 15, 2021;

• $240,753,000 of 5 3/8% notes due Oct. 1, 2022;

• $421,403,000 of 5 7/8% notes due Nov. 15, 2024;

• $395,535,000 of 5¼% notes due June 1, 2026; and

• $347,343,000 of 5% notes due June 15, 2027.

Lennar was also soliciting, on behalf of CalAtlantic, consents to amend the notes to eliminate some covenants, restrictive provisions and events of default from those indentures.

The company previously announced that by the early deadline it had secured the needed consents to amend each series of notes issued by CalAtlantic Group.

Global Bondholder Services Corp. (866 794-2200 or 212 430-3774 for banks and brokers) is the exchange agent and information agent for the Rule 144A and Regulation S offers.

Lennar is a Miami-based homebuilder. CalAtlantic is a home construction company based in Arlington, Va.

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