New Issue: Taylor Morrison sells upsized $350 million 10-year notes at par to yield 5 5/8%

By Paul A. Harris

Portland, Ore., Feb. 28 - Taylor Morrison Communities Inc. priced an upsized $350 million of non-callable 10-year senior notes (B2/BB-/) at par to yield 5 5/8% on Friday, according to a market source.

The deal was upsized from $300 million.

The yield printed at the tight end of final yield talk in the 5¾% area. That talk had tightened from initial guidance of 5¾% to 6%, according to a buyside source.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. were the joint bookrunners.

The Scottsdale, Ariz.-based homebuilder plans to use the proceeds for general corporate purposes.

Issuer:	Taylor Morrison Communities Inc. and Monarch Communities Inc.
Amount:	$350 million, increased from $300 million
Maturity:	March 1, 2024
Securities:	Senior notes
Bookrunners:	J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc.
Co-managers:	CIBC World Markets, Comerica Securities, Goldman Sachs & Co., RBC Capital Markets, TD Securities, Wells Fargo Securities LLC
Coupon:	5 5/8%
Price:	Par
Yield:	5 5/8%
Spread:	295 bps
Call protection:	Non-callable
Make-whole:	Treasuries plus 50 bps
Trade date:	Feb. 28
Settlement date:	March 5
Ratings:	Moody's: B2
	Standard & Poor's: BB-
Distribution:	Rule 144A and Regulation S for life
Price talk:	5¾% area
Marketing:	Quick to market

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