New Issue: Avatar upsized $100 million convertible yields 4.5%, up 40%

Nashville, March 25 - Avatar Holdings Inc. sold an upsized $100 million of 20-year convertible senior notes at par to yield 4.5% with a 40% initial conversion premium via sole bookrunner Citigroup Global Markets Inc.

The Rule 144A/Regulation S deal, boosted from $75 million, sold at the cheap end of yield talk for a 4.0% to 4.5% coupon and in the middle of premium guidance of 38% to 42%.

Coral Gables, Fla.-based Avatar, a real estate development company, said it would use $42.9 million of proceeds to purchase shares from purchasers of the notes, targeting 1.14 million shares at $37.59 each. Remaining proceeds will be used for general corporate purposes.

Terms of the deal are:

Issuer:	Avatar Holdings Inc.
Issue:	Convertible senior notes
Bookrunner:	Citigroup Global Markets Inc.
Amount:	$100 million, up from $75 million
Greenshoe:	$20 million
Maturity:	March 30, 2024
Coupon:	4.5%
Price:	Par
Yield:	4.5%
Conversion premium:	40%
Conversion price:	$52.626
Conversion ratio:	19.002
Contingent conversion:	120%
Call:	Non-callable for 7 years
Put:	In years 7, 10 and 15
Price talk:	4.0-4.5%, up 38-42%
Pricing date:	March 24, after the close
Settlement date:	March 30
Distribution:	Rule 144A/Regulation S

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