New York, Sept. 12 - Meritage Homes Corp. priced an upsized $110 million sale of 20-year convertible senior notes after the market closed Wednesday to yield 1.875% with a 47.5% initial conversion premium.
The amount was increased from an originally announced $100 million and the convertibles came at the cheap end of talked for a yield of 1.375% to 1.875% with an initial conversion premium of 47.5% to 52.5%.
The registered deal was sold by joint bookrunners Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Bank of America Merrill Lynch.
The notes are non-callable for five years, with puts in years five, 10 and 15.
The company plans to use proceeds for general corporate purposes.
Meritage is a Scottsdale, Ariz.-based homebuilder.
| Issuer: | Meritage Homes Corp.
|
| Issue: | Convertible senior notes
|
| Amount: | $110 million
|
| Greenshoe: | $16.5 million
|
| Maturity: | Sept. 15, 2032
|
| Coupon: | 1.875%
|
| Initial conversion premium: | 47.5%
|
| Conversion price: | $58.14
|
| Conversion rate: | 17.1985
|
| Call: | Non-callable for five years
|
| Puts: | In years five, 10 and 15
|
| Pricing date: | Sept. 12, after close
|
| Settlement: | Sept. 18
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Bank of America Merrill Lynch.
|
| Stock symbol: | NYSE: MTH
|
| Stock price: | $39.42 at close on Sept. 12
|
| Market capitalization: | $1.4 billion
|
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