TRI Pointe Group, Inc., Irvine (NYSE:TPH) on Monday announced the proposed public offering by the company of $250 million aggregate principal amount of senior notes, subject to market and other conditions. J.P. Morgan, Citigroup, Credit Suisse, Wells Fargo Securities and US Bancorp are acting as joint book-running managers for the proposed notes offering and Fifth Third Securities and Zelman Partners LLC are acting as co-managers for the proposed notes offering.
The company expects that the notes will have a ten-year maturity. However, the interest rate, maturity date, size of the offering and other terms of the notes will be determined at the time of pricing of the offering by the company and the underwriters. The notes will be, jointly and severally, guaranteed by all of the company’s wholly owned domestic subsidiaries to the extent they guarantee the company’s unsecured revolving credit facility. The notes are expected to be pari passu in right of payment with the company’s existing senior unsecured notes.
The company intends to use the net proceeds from the proposed sale of the notes to repay approximately $200 million of borrowings under its $625 million unsecured revolving credit facility, which matures on May 18, 2019, and the remainder of the net proceeds for general corporate purposes, which may include but are not limited to, the repayment of outstanding indebtedness, the acquisition of additional properties, the repurchase of shares of its common stock pursuant to its previously announced stock repurchase program, working capital and capital expenditures.
