By Paul A. Harris
Portland, Ore., July 8 – Taylor Morrison Communities Inc. priced an upsized $500 million issue of 10-year senior bullet notes (Ba3/BB) at par to yield 5 1/8% in a Wednesday drive-by, according to a syndicate source.
Citigroup Global Markets Inc. was the lead left bookrunner. Joint bookrunners were 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.
The issue size increased from $400 million.
The yield printed 12.5 basis points beneath the tight end of yield talk in the 5¼% area. Initial price talk was in the mid-5% area.
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 2020.
| Issuer: | Taylor Morrison Communities Inc.
|
| Amount: | $500 million, increased from $400 million
|
| Maturity: | Aug. 1, 2030
|
| Securities: | Senior notes
|
| Lead left bookrunner: | Citigroup Global Markets Inc.
|
| Joint bookrunners: | 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.
|
| Co-managers: | TCB, BBVA Securities Inc., Zions Direct, Comerica Securities Inc. and Zelman
|
| Coupon: | 5 1/8%
|
| Price: | Par
|
| Yield: | 5 1/8%
|
| Spread: | 448 bps
|
| Call protection: | Non-callable
|
| Trade date: | July 8
|
| Settlement date: | July 22
|
| Ratings: | Moody's: Ba3
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5¼% area
|
| Marketing: | Drive-by
|
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