Lennar tenders for three notes series using proceeds from new issue

By Jennifer Chiou

New York, April 26 - Lennar Corp. announced the start of an up to $200 million tender offer for its $244 million of 5.95% senior notes due 2011, $350 million of 5.95% senior notes due 2013 and $176 million of 5 1/8% senior notes due 2010.

The tender offer will be conditioned on, among other things, the completion of a $250 million offering of senior notes that is expected to close on May 3. Proceeds will be used to fund the tender offer and for general corporate purposes.

According to a company news release, the tender offer is structured in a "waterfall" style, with each of the three notes series listed in order of acceptance priority level. The company will first accept any tendered 5.95% notes due 2011 up to the cap before accepting the other 5.95% series and the 5 1/8% notes.

The offer will end at 5 p.m. ET on May 24. The withdrawal deadline is May 6.

For each $1,000 principal amount, Lennar said it will pay $1,047.50 for the 5.95% notes due 2011, $1,030.00 for the 5.95% notes due 2013 and $1,015.00 for the 5 1/8% notes, each including an early tender payment of $30.00 for those who tender prior to 5 p.m. ET on May 6.

Citigroup Global Markets Inc. (800 558-3745) and J.P. Morgan Securities Inc. (800 245-8812 or call collect 212 270-3994) are the dealer managers. Global Bondholder Services Corp. is the depositary and information agent (212 430-3774 or 866 294-2200).

Lennar is a Miami-based homebuilder and provider of financial services.

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