New Issue: Taylor Morrison prices upsized $450 million 8.5-year bullet at par to yield 5¾%

By Paul A. Harris

Portland, Ore., July 18 – Taylor Morrison Communities, Inc. priced an upsized $450 million issue of 8.5-year senior bullet notes (Ba3/BB) at par to yield 5¾% in a Thursday drive-by, according to market sources.

The issue size was increased from $425 million.

The yield printed at the tight end of yield talk in the 5 7/8% area. Initial price talk was 5 7/8% to 6%.

Goldman Sachs & Co. LLC was the left bookrunner. Joint bookrunners were Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Mizuho Securities USA Inc., US Bank and Wells Fargo Securities LLC.

The Scottsdale, Ariz.-based homebuilder plans to use the proceeds, along with cash on hand, to redeem its senior notes due 2022.

Issuer:	Taylor Morrison Communities, Inc.
Amount:	$450 million, increased from $425 million
Maturity:	Jan. 15, 2028
Securities:	Senior notes
Left bookrunner:	Goldman Sachs & Co. LLC
Joint bookrunners:	Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Mizuho Securities USA Inc., US Bank and Wells Fargo Securities LLC
Co-managers:	BofA Securities Inc., Comerica Securities Inc. and TCB
Coupon:	5¾%
Price:	Par
Yield:	5¾%
Spread:	378 bps
Call protection:	Callable at par three months prior to maturity, otherwise non-callable
Trade date:	July 18
Settlement date:	Aug. 1
Ratings:	Moody's: Ba3
	S&P: BB
Distribution:	Rule 144A and Regulation S for life
Price talk:	5 7/8% area
Marketing:	Quick to market

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