Ryland Group plans $250 million six-year convertibles to yield 0.25%-0.75%, up 45%-50%

By Rebecca Melvin

New York, May 14 - Ryland Group Inc. launched $250 million of six-year convertibles ahead of the market open Tuesday that were seen pricing after the close, and were talked to yield 0.25% to 0.75% with an initial conversion premium of 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.

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