By Rebecca Melvin and Jennifer Chiou
New York, May 14 - Ryland Group Inc. priced $250 million of six-year convertible senior notes after the close to yield 0.25% with an initial conversion premium of 45% to 50%, according to a press release.
The yield came at the tight end of 0.25% to 0.75% talk. The initial conversion premium was anticipated to be 45% to 50%, according to market sources.
The registered, off-the-shelf deal has an over-allotment option for $37.5 million of notes.
The securities are being marketed by Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities, LLC and RBS Securities Inc. as joint book-running managers, with Deutsche Bank Securities Inc. and UBS Securities LLC acting as co-managers.
The notes are non-callable for four years with no puts.
The company plans to use the proceeds for general corporate purposes, which may include acquisitions to expand market opportunities.
Westlake Village, Calif.-based Ryland is a homebuilder and mortgage finance company.
| Issuer: | Ryland Group Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $250 million
|
| Greenshoe: | $37.5 million
|
| Maturity: | June 1, 2019
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities, LLC and RBS Securities Inc.
|
| Coupon: | 0.25%
|
| Price: | Par
|
| Yield: | 0.25%
|
| Conversion premium: | 50%
|
| Conversion price: | $75.01
|
| Call: | Non-callable for four years with no puts
|
| Pricing date: | May 14
|
| Settlement date: | May 20
|
| Stock listing: | NYSE: RYL
|
| Stock reference: | $50.01 at close May 14
|
| Market capitalization: | $2.28 billion
|
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