By Rebecca Melvin
New York, Nov. 22 - Lennar Corp. priced an upsized $350 million of 10-year convertible senior notes after the market close Tuesday at par to yield 3.25% with an initial conversion premium of 37.5%, according to a news release.
The Rule 144A deal was initially going to be $300 million in size.
Pricing came at the cheap end of talk, which was for a yield of 2.75% to 3.25% with an initial conversion premium of 37.5% to 42.5%.
The deal has a $50 million greenshoe, which was upsized from $45 million.
J.P. Morgan Securities LLC and Citigroup Global Markets Inc. were the joint bookrunners of the deal, with Deutsche Bank Securities Inc. acting as a co-manager.
The bonds are non-callable for five years and may be put on Nov. 15, 2016. Conversion will be settled in stock only. There is standard takeover and dividend protection.
Proceeds will be used for general corporate purposes, which may include repayment of outstanding debt and potential acquisitions of real estate or financial investments.
Lennar is a Miami-based homebuilder and provider of financial services.
| Issuer: | Lennar Corp.
|
| Issue: | Convertible senior notes
|
| Amount: | $350 million, upsized from $300 million
|
| Greenshoe: | $50 million, upsized from $45 million
|
| Maturity: | Nov. 15, 2021
|
| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc.
|
| Co-manager: | Deutsche Bank Securities Inc.
|
| Coupon: | 3.25%
|
| Price: | Par
|
| Yield: | 3.25%
|
| Conversion premium: | 37.5%
|
| Conversion price: | $23.50
|
| Conversion ratio: | 45.5555
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Net share settlement: | No
|
| Calls: | Non-callable until Nov. 20, 2016
|
| Put: | Nov. 15, 2016
|
| Price talk: | 2.75%-3.25%, up 37.5%-42.5%
|
| Pricing date: | Nov. 22, post close
|
| Settlement date: | Nov. 29
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: LEN
|
| Stock price: | $17.09 as of close Nov. 22
|
| Market capitalization: | $3.2 billion
|
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