By Paul A. Harris
St. Louis, April 30 - Ryland Group Inc. priced a $230 million issue of 8.4% eight-year senior notes (Ba3) at 98.006 to yield 8¾% on Thursday, according to an informed source.
The notes were talked in the 8¾% area, according to a buyside source. That talk was lower than the initial 8 7/8% guidance, according to a market source.
Citigroup Global Markets Inc. ran the books off the investment-grade syndicate desk because of a preference for transacting bond deals from homebuilders in that fashion, according to an informed source.
Proceeds will be used for general corporate purposes.
The company is based in Calabasas, Calif.
| Issuer: | Ryland Group Inc.
|
| Face amount: | $230 million
|
| Proceeds: | $225.414 million (approximate)
|
| Maturity: | May 15, 2017
|
| Security description: | Senior notes
|
| Bookrunner: | Citigroup Global Markets Inc.
|
| Coupon: | 8.4%
|
| Price: | 98.006
|
| Yield: | 8¾%
|
| Spread: | 562.6 bps
|
| Call protection: | Non-callable
|
| Change-of-control put: | 101%
|
| Trade date: | April 30
|
| Settlement date: | May 5
|
| Rating: | Moody's: Ba3
|
| Distribution: | SEC registered
|
| Price talk: | 8¾%
|
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