New Issue: Taylor Morrison prices $350 million eight-year notes at par to yield 5 7/8%

By Paul A. Harris

Portland, Ore., April 1 – Taylor Morrison Communities, Inc. and Taylor Morrison Holdings II, Inc. priced a $350 million issue of non-callable eight-year senior notes (B2/BB-) at par to yield 5 7/8% on Wednesday, according to a syndicate source.

The yield printed at the tight end of yield talk in the 6% area.

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

The Scottsdale, Ariz., homebuilder plans to use the proceeds, together with cash on hand, to call its 7¾% senior notes due 2020.

Issuers:	Taylor Morrison Communities, Inc. and Taylor Morrison Holdings II, Inc.
Amount:	$350 million
Maturity:	April 15, 2023
Securities:	Senior notes
Joint physical bookrunners:	Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC
Joint bookrunners:	J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co.
Co-managers:	Comerica, Friedman Billings Ramsay, HSBC, Wells Fargo Securities LLC
Coupon:	5 7/8%
Price:	Par
Yield:	5 7/8%
Spread:	422 bps
Call protection:	Par call three months prior to maturity, otherwise non-callable
Trade date:	April 1
Settlement date:	April 16
Ratings:	Moody's: B2
	Standard & Poor's: BB-
Distribution:	Rule 144A and Regulation S for life
Price talk:	6% area
Marketing:	Quick to market

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