Taylor Morrison to price $400 million 10-year notes on Wednesday; initial talk mid-5% area

By Paul A. Harris

Portland, Ore., July 8 – Taylor Morrison Communities Inc. plans to price a $400 million offering of 10-year senior notes (Ba3/BB) in a Wednesday drive-by trailing a mid-morning conference call with investors, according to a syndicate source.

Initial price talk has the deal coming to yield in the mid-5% area.

Citigroup Global Markets Inc. is the left lead bookrunner. J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC, BofA Securities Inc., SunTrust Robinson Humphrey Inc. and Mizuho Securities USA Inc. are the joint bookrunners.

TCB, BBVA Securities Inc., Zions Direct, Comerica Securities Inc. and Zelman are the co-managers.

The Rule 144A and Regulation S for life notes feature a make-whole call at Treasuries plus 50 basis points until six months prior to maturity, then become callable at par. They are otherwise non-callable.

The Scottsdale, Ariz.-based homebuilder plans to use the proceeds, together with cash on hand, to partially redeem the William Lyon Homes, Inc. 6% senior notes due September 2023 and 5 7/8% senior notes due January 2025.

Taylor Morrison acquired William Lyon in a transaction that closed in early February.

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