Adams Homes offers to buy up to $100 million of 7½% notes due 2025

By Marisa Wong

Los Angeles, Sept. 21 – Adams Homes, Inc. has begun an offer to purchase for cash up to $100 million aggregate principal amount of its $182,466,000 outstanding 7½% senior notes due 2025 (Cusip: 00623PAA9, U0060CAA5), according to a press release.

Holders who tender their notes by the early participation deadline will be eligible to receive a total consideration of $1,002.50 per $1,000 principal amount.

The total consideration includes an early participation payment of $30 per $1,000 principal amount.

Holders tendering after the early deadline will only be eligible to receive the tender offer consideration of $972.50 per $1,000 principal amount, which is the total consideration less the early participation payment.

The company will also pay accrued interest.

Notes that are tendered and accepted for purchase at or prior to the early participation date will be settled on the initial payment date.

If no additional notes are tendered after the early participation date, or if the tender offer is fully subscribed as of the early participation date, there will be no final payment date.

If the aggregate principal amount of notes tendered exceeds the maximum tender amount, proration will be applied.

The company said it reserves the right to increase the offer cap.

The early participation deadline is 5 p.m. ET on Oct. 4, which is also the withdrawal deadline.

The initial payment date is expected to be Oct. 6.

The tender offer will expire at 5 p.m. ET on Oct. 20.

Final settlement is expected to be on Oct. 24.

The tender offer is conditioned on the receipt of proceeds of a proposed debt financing in an amount sufficient to repurchase all of the notes tendered and accepted for purchase under the tender offer.

Wells Fargo Securities, LLC (866 309-6316 or 704 410-4759; liabilitymanagement@wellsfargo.com) is the dealer manager.

D.F. King & Co., Inc. (866 207-2239 or 212 269-5550) is the information agent.

The private homebuilder is based in Gulf Breeze, Fla.

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