NVR $325 million 30-year convertibles talked at midpoint to yield 1.5%, up 25%

By Rebecca Melvin

New York, Sept. 9 - Homebuilder NVR Inc. plans to price $325 million of 30-year convertible senior notes after the close Tuesday, with the midpoint of talk at a 1.5% yield with an initial conversion premium of 25%, according to market sources.

Credit Suisse Securities (USA) LLC is bookrunner of the deal, which is being sold under a shelf registration.

There is an over-allotment option of up to an additional $48.75 million of notes.

The notes are non-callable for five years, with puts in years 2013, 2018, 2023, 2028 and 2033. There is also a put in the event of certain types of corporate transactions or other events constituting a fundamental change.

Proceeds are for general corporate purposes.

Reston, Va.-based NVR is a homebuilder operating in 12 states, primarily in the eastern United States.

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