Technical Olympic issues price talk on $350 million two-part note offering, pricing Friday

By Paul A. Harris

St. Louis, Mo., June 12 - Price talk was heard Wednesday on Technical Olympic USA, Inc.'s two-tranche offering of $350 million notes, according to a syndicate source.

Price talk is 8½%-8¾% on the $200 million of eight-year non-call-four senior notes (Ba3/B+), the source told Prospect News, adding that talk on the $150 million of 10-year non-call-five senior subordinated notes (B2/B-) is +75 basis points area over the seniors.

Pricing is expected Friday morning.

Salomon Smith Barney is the bookrunner. Deutsche Bank Securities Inc. is the joint lead. And Fleet Securities is co-manager.

Proceeds from the Rule 144A notes will be used to repay outstanding debt of Newmark and Engle Holdings Corp., to repay a $72 million obligation of Technical Olympic, Inc., to defease or discharge Engle's 9¼% senior notes due 2008 and to pay expenses of note offering.

The issuer is a Sugarland Tex.-based homebuilder serving Texas and Tennessee.

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