Meritage Homes issues stock for $6.6 million of 7.731% notes in discounted exchange

By Angela McDaniels

Tacoma, Wash., April 27 - Meritage Homes Corp. has retired $6.6 million principal amount of its 7.731% senior subordinated notes due 2017 during the current quarter, according to a company news release.

The company issued roughly 250,000 shares of common stock in exchange for the notes.

The implied discount to par is 45%, and the exchange resulted in a $2.8 million gain.

The company said it may do additional exchanges in the future, depending on terms and market conditions.

Meritage is a homebuilder based in Scottsdale, Ariz.

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