PulteGroup gives final results in tender offers for $1 billion notes

By Toni Weeks

San Diego, Nov. 26 - PulteGroup, Inc. announced the final tender results for its cash offers for up to $1 billion principal amount of six series of notes, four of which were issued by subsidiary Centex Corp.

The tender offer began Oct. 24 and expired at midnight ET on Nov. 21.

In the first offer for any and all notes, PulteGroup obtained tenders for the following:

• $11,742,000, or 9.83%, of its $119,477,000 of 5 1/8% notes due 2013;

• $25,935,000, or 10.13%, of its $255,919,000 of 5¼% notes due 2014;

• $75,833,000, or 23.8%, of its $318,671,000 of 5.7% notes due 2014; and

• $82,494,000, or 39.66%, of its $208,027,000 of 5.2% notes due 2015.

Of the four series of notes listed above, the 5 1/8% notes and 5.7% notes were issued by Centex.

The company previously said that it had accepted by the early tender deadline, 5 p.m. ET on Nov. 6, $11,702,000, or 9.79%, of the 5 1/8% notes due 2013 and $82,394,000, or 39.61%, of the 5.2% notes. No new 5¼% notes and 5.7% notes were tendered after the early tender deadline. Payment for notes tendered by the early deadline was made on Nov. 8.

In the second offer for a capped amount of notes, the company took in tenders for $10,895,000, or 3.83%, of Centex's $284,464,000 of 5¼% notes due 2015 and $14,755,000, or 3.07%, of Centex's $480 million of 6½% notes due 2016. The company previously reported that $10,885,000 of the 5¼% notes due 2015 and $14,755,000 of the 6½% notes were tendered by the early deadline.

In the capped offer, the maximum combined amount of notes accepted for purchase was equal to $1 billion minus the aggregate value of notes tendered in the any and all offer, with the 5¼% notes due 2015 having a higher acceptance priority level than the 6½% notes. The amount tendered by noteholders fell short of the cap, thus all notes tendered were accepted by the company for repurchase. Settlement for all notes tendered after the early deadline occurred Nov. 23.

As reported, the total purchase price per $1,000 principal amount of notes was $1,041.25 for the 5 1/8% notes, $1,048.75 for the 5¼% notes due 2014, $1,070.00 for the 5.7% notes, $1,080.00 for the 5.2% notes, $1,085.00 for the 5¼% notes due 2015 notes and $1,130.00 for the 6½% notes. These amounts include an early tender payment of $30.00 per $1,000 principal amount for notes tendered by the Nov. 6 early tender deadline.

Tenders of notes could be validly withdrawn at any time before the early tender deadline.

The company also paid accrued interest from the last interest payment date to, but not including, the applicable settlement date.

At the time of issue of the 5¼% notes due 2014 and the 5.2% notes, the issuer was known as Pulte Homes, Inc.

Citigroup (800 558-3745 or 212 723-6106), Bank of America Merrill Lynch (888 292-0070 or 980 387-3907), Deutsche Bank Securities (855 287-1922 or 212 250-7527), JPMorgan (800 245-8812 or 212 270-1200), UBS Investment Bank (888 719-4210 or 203 719-4210) and Wells Fargo Securities (866 309-6316 or 704 715-8341) were the dealer managers. Global Bondholder Services Corp. (866 873-5600 or 212 430-3774) was the depositary and the information agent.

Bloomfield Hills, Mich.-based PulteGroup is a homebuilding company.

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