TRI Pointe Group, Inc., Irvine (NYSE:TPH) raised the amount and announced the pricing of the public offering of $300 million aggregate principal amount of senior notes originally announced Monday, representing an increase of $50 million in aggregate principal amount from the initially proposed offering size. 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 notes will pay interest semi-annually in arrears at a rate of 5.25% per year and will mature on June 1, 2027, unless earlier repurchased. 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 company intends to use the net proceeds from the 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. The notes will be pari passu in right of payment with the company’s existing senior unsecured notes.
The closing of the notes offering is expected to occur on June 8, 2017,
