By Paul A. Harris
Portland, Ore., Sept. 22 – Adams Homes, Inc. priced a $250 million issue of five-year senior notes (B2/BB-/BB-) at par to yield 9¼% on Friday, according to market sources.
The yield printed in the middle of yield talk in the 9¼% area.
Wells Fargo Securities LLC was the sole bookrunner.
The Gulf Breeze, Fla.-based private homebuilder plans to use the proceeds to pay off its revolving credit facility, as well as to fund a tender for up to $100 million of its 7½% senior notes due 2025, and for general corporate purposes.
| Issuer: | Adams Homes, Inc.
|
| Amount: | $250 million
|
| Issue: | Senior notes
|
| Maturity: | Oct. 15, 2028
|
| Bookrunner: | Wells Fargo Securities, LLC
|
| Co-manager: | Regions Securities LLC
|
| Coupon: | 9¼%
|
| Price: | Par
|
| Yield: | 9¼%
|
| Spread: | 466 bps
|
| First call: | Oct. 15, 2025 at 104.625
|
| Trade date: | Sept. 22
|
| Settlement date: | Oct. 6
|
| Ratings: | Moody’s: B2
|
| S&P: BB-
|
| Fitch: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 9¼% area
|
| Marketing: | Roadshow
|
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