By Paul A. Harris
Portland, Ore., May 21 – Taylor Morrison Communities Inc. priced an upsized $500 million issue of eight-year senior bullet notes (Ba3/BB) at par to yield 5 7/8% in a quick-to-market Tuesday trade, according to market sources.
The issue size increased from $475 million.
The yield printed at the tight end of yield talk in the 6% area. Initial talk was in the low 6% area.
Citigroup Global Markets Inc. was the lead left bookrunner.
Joint bookrunners were Goldman Sachs & Co. LLC, Mizuho Securities USA Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC.
The Scottsdale, Ariz.-based homebuilder plans to use the proceeds, together with cash on hand, to redeem its 5¼% notes due 2021.
| Issuer: | Taylor Morrison Communities Inc.
|
| Amount: | $500 million, increased from $475 million
|
| Maturity: | June 15, 2027
|
| Securities: | Senior notes
|
| Left bookrunner: | Citigroup Global Markets Inc.
|
| Joint bookrunners: | Goldman Sachs & Co. LLC, Mizuho Securities USA Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC
|
| Co-managers: | BofA Securities Inc., Comerica and TCB
|
| Coupon: | 5 7/8%
|
| Price: | Par
|
| Yield: | 5 7/8%
|
| Spread: | 344.5 bps
|
| Call protection: | Non-callable
|
| Trade date: | May 21
|
| Settlement date: | June 5
|
| Expected ratings: | Moody's: Ba3
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6% area
|
| Marketing: | Quick to market
|
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