Adams Homes expected to sell $250 million five-year notes on Friday; initial talk 9% area

By Paul A. Harris

Portland, Ore., Sept. 21 – Adams Homes, Inc. expects to price a $250 million offering of senior notes due 2028 (B2/B+/BB-) on Friday, according to market sources.

An investor call is set to begin at 11:30 a.m. ET on Thursday.

Initial talk has the notes coming to yield in the 9% area, according to a bond trader, who noted that when the deal was announced as much as half of it was done in reverse inquiry.

The Rule 144A and Regulation S for life five-year notes become subject to their first call after two years at par plus 50% of the coupon.

Wells Fargo Securities LLC is the sole bookrunner. Regions Securities LLC is the co-manager.

The Gulf Breeze, Fla.-based private homebuilder plans to use the proceeds to pay off its revolver, as well as to fund a tender for up to $100 million of its 7½% senior notes due 2025, and for general corporate purposes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.