By Paul A. Harris
Portland, Ore., May 4 – AV Homes, Inc. priced an upsized $400 million issue of five-year senior notes (B3/B-) at par to yield 6 5/8% on Thursday, according to market sources.
The issue size was increased from $300 million.
The yield printed at the tight end of yield talk in the 6¾% area. Initial guidance was 6¾% to 7%.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets and U.S. Bancorp Investments Inc. managed the sale.
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.
| Issuer: | AV Homes, Inc.
|
| Amount: | $400 million, increased from $300 million
|
| Tenor: | Five years
|
| Securities: | Senior notes
|
| Managers: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets, U.S. Bancorp Investments Inc.
|
| Coupon: | 6 5/8%
|
| Price: | Par
|
| Yield: | 6 5/8%
|
| Call protection: | Two years
|
| Trade date: | May 4
|
| Settlement date: | May 18
|
| Ratings: | Moody's: B3
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Roadshow
|
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