Ashton Woods talks $250 million eight-year notes to yield 7%-7¼%

By Paul A. Harris

Portland, Ore., Jan. 31 - Ashton Woods USA LLC and Ashton Woods Finance Co. talked their $250 million offering of eight-year senior notes (Caa1/B-) to yield 7% to 7¼%, a market source said on Thursday.

Books close at 10 a.m. ET on Friday, and the deal is set to price thereafter.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the joint bookrunners. Moelis Securities is the co-manager.

The Rule 144A and Regulation S for life notes come with four years of call protection.

Proceeds, together with an equity contribution from the owner, will be used to redeem the company's existing 11% senior subordinated notes due 2015 and its 9½% senior subordinated notes due 2015, as well as to repay its existing second-lien credit facility and revolver and for general corporate purposes.

Ashton Woods is an Atlanta-based homebuilder.

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