Adams Homes tender offer for 7½% senior notes due 2025 oversubscribed by early deadline

By Mary-Katherine Stinson

Lexington, Ky., Oct. 6 – Adams Homes, Inc. gave results of its tender offer to purchase for cash up to $100 million aggregate principal amount of its $182,466,000 outstanding 7½% senior notes due 2025 (Cusip: 00623PAA9, U0060CAA5), according to a press release.

As of the early participation deadline of 5 p.m. ET on Oct. 4, holders of the outstanding notes had validly tendered approximately $148.1 million in total principal of the notes.

As a result of the oversubscription of the offer, Adams Homes has accepted for purchase $100 million of the notes using the approximate proration factor of 67.6%.

Holders who tendered their notes by the early participation deadline will receive a total consideration of $1,002.50 per $1,000 principal amount, which includes an early participation payment of $30 per $1,000 principal amount.

The company will also pay accrued interest.

Notes that are tendered and accepted for purchase at or prior to the early participation date will be settled on the Oct. 6 initial payment date.

No additional notes tendered will be accepted after the early participation deadline. Notes that are not purchased will be returned to the noteholder.

When the offer was launched, it was announced that holders tendering after the early deadline would only be eligible to receive the tender offer consideration of $972.50 per $1,000 principal amount, which is the total consideration less the early participation payment. However, that is no longer relevant.

The early participation deadline of 5 p.m. ET on Oct. 4 was also the withdrawal deadline.

The tender offer expires at 5 p.m. ET on Oct. 20.

Final settlement was expected to be on Oct. 24. However, due to the oversubscription, there will be no final payment date.

The tender offer is conditioned on the receipt of proceeds of a proposed debt financing in an amount sufficient to repurchase all the notes tendered and accepted for purchase under the tender offer.

Wells Fargo Securities, LLC (866 309-6316 or 704 410-4759; liabilitymanagement@wellsfargo.com) is the dealer manager.

D.F. King & Co., Inc. (866 207-2239 or 212 269-5550) is the information agent.

The private homebuilder is based in Gulf Breeze, Fla.

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