Published on 6/5/2017 in the Prospect News High Yield Daily.
New Issue: TRI Pointe sells upsized $300 million 5¼% 10-year bullet notes at par
By Paul A. Harris
Portland, Ore., June 5 – TRI Pointe Group, Inc. priced an upsized $300 million issue of 10-year senior bullet notes (Ba3/BB-) at par to yield 5¼% in a quick-to-market Monday transaction, according to a market source.
The issue size was increased from $250 million.
The yield printed at the wide end of the 5 1/8% to 5¼% yield talk.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC and U.S. Bancorp Investments Inc. were joint bookrunners.
The Irvine, Calif.-based homebuilder intends to use the net proceeds to repay approximately $200 million of borrowings under its $625 million unsecured revolving credit facility, which matures on May 18, 2019, with the remainder to be used for general corporate purposes, which may include debt repayment, property acquisition, the repurchase of common shares via the previously announced stock repurchase program, working capital and capital expenditures.
| Issuer: | TRI Pointe Group, Inc.
|
| Amount: | $300 million, increased from $250 million
|
| Maturity: | June 1, 2027
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC and U.S. Bancorp Investments Inc.
|
| Co-managers: | Fifth Third Securities, Zelman Partners LLC
|
| Coupon: | 5¼%
|
| Price: | Par
|
| Yield: | 5¼%
|
| Spread: | 308 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until Dec. 1, 2026, then callable at par, otherwise non-callable
|
| Trade date: | June 5
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| Settlement date: | June 8
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| Ratings: | Moody's: Ba3
|
| S&P: BB-
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| Distribution: | SEC registered
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| Price talk: | 5 1/8% to 5¼%
|
| Marketing: | Quick to market
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