AV Homes starts roadshow for $300 million five-year senior notes; initial guidance 6¾%-7%

By Paul A. Harris

Portland, Ore., May 1 – AV Homes, Inc. began a roadshow on Monday for a $300 million offering of five-year senior notes, according to a market source.

Pricing is expected on Friday.

Initial guidance has the deal coming to yield 6¾% to 7%, the source said.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets and U.S. Bancorp Investments Inc. are managing the Rule 144A and Regulation S notes offering.

The notes come with two years of call protection.

The Scottsdale, Ariz.-based homebuilder plans to use the proceeds to take out its $200 million of outstanding 8½% senior notes due 2019, as well as to repay $30 million currently outstanding under its revolving credit facility and for general corporate purposes, which may include acquisitions.

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