By Rebecca Melvin
New York, Nov. 5 - Lennar Corp. prices an upsized $435 million of 10-year convertible senior notes at par on Thursday after the markets closed to yield 2.75% with an initial conversion premium of 40%, according to a news release.
The Rule 144A deal, which was originally talked at $350 million in size, has a greenshoe for up to an additional $65 million of notes. The original greenshoe was for $52.5 million.
Pricing came at the midpoint of price talk, which was 2.5% to 3% for the coupon and 37.5% to 42.5% for the premium.
J.P. Morgan Securities LLC and Citigroup Global Markets Inc. were the joint bookrunners.
There is contingent conversion if shares are 130% of the conversion price.
The convertibles are non-callable for five years, with a put in year five. There is dividend and takeover protection.
There is contingent interest after year five subject to a 130% threshold. And the bonds settle in cash or stock at the company's option.
Proceeds are for general corporate purposes and may include repayment of outstanding debt and potential real estate acquisitions.
Lennar is a Miami-based homebuilder and provider of financial services.
| Issuer: | Lennar Corp.
|
| Issue: | Convertible senior notes
|
| Amount: | $435 million, upsized from $350 million
|
| Greenshoe: | $65 million, upsized $52.5 million
|
| Maturity: | Dec. 15, 2020
|
| Bookrunners: | J.P. Morgan Securities LLC and Citigroup Global Markets Inc.
|
| Coupon: | 2.75%
|
| Price: | Par
|
| Yield: | 2.75%
|
| Conversion premium: | 40%
|
| Conversion price: | $22.13
|
| Conversion ratio: | 45.1794
|
| Call: | Non-callable until Dec. 20, 2015
|
| Puts: | Dec. 15, 2015
|
| Contingent conversion: | Yes, at 130%
|
| Contingent interest: | After year five, at 130%
|
| Takeover protection: | Yes, via make-whole table
|
| Dividend protection: | Yes
|
| Price talk: | 2.5%-3%, up 37.5%-42.5%
|
| Pricing date: | Nov. 4
|
| Settlement date: | Nov. 10
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: LEN
|
| Stock reference price: | $15.81
|
| Market capitalization: | $2.92 billion
|
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