By Paul A. Harris
Portland, Ore., June 25 – AV Homes Inc. priced a $200 million issue of five-year senior notes (Caa1/B-/) at par to yield 8½% on Wednesday, according to a syndicate source.
The yield printed on top of yield talk but wide of earlier guidance in the 8% area, according to a junk bond trader.
There were also covenant changes.
Previously in the market as a Rule 144A and Regulation S for life deal, the notes now have registration rights that will remain in effect for one year.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc., RBC Capital Markets, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are the joint bookrunners.
The Kissimmee, Fla.-based homebuilder plans to use the proceeds for general corporate purposes, including land purchases, land development, home-building and acquisitions.
| Issuer: | AV Homes Inc.
|
| Amount: | $200 million
|
| Maturity: | July 1, 2019
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., RBC Capital Markets, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc.
|
| Co-manager: | JMP Securities, Zelman Partners LLC
|
| Coupon: | 8½%
|
| Price: | Par
|
| Yield: | 8½%
|
| Spread: | 685 bps
|
| First call: | July 1, 2016 at 106.375
|
| Trade date: | June 25
|
| Settlement date: | June 30
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 8½% area, revised from 8% area guidance
|
| Marketing: | Roadshow
|
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