CalAtlantic Group, Inc. (NYSE: CAA) on Tuesday announced the pricing of its previously announced public offering of its senior notes and an increase in the amount of the offering to $350 million.
The notes will pay interest semi-annually in arrears at a rate of 5.000% per year and will mature on June 15, 2027, unless earlier redeemed or repurchased. The notes will be guaranteed on a senior unsecured basis by the company’s subsidiaries that guarantee the company’s outstanding notes.
CAA intends to use the net proceeds of the notes offering for general corporate purposes, which it said may include acquisition of land or other home building companies, land development, home construction, repurchases of common stock and repayment or repurchases of the company’s debt, including the repayment or repurchase of the Company’s 1.25% senior convertible notes due August 2032.
The closing of the notes offering is expected to occur on June 9, 2017. Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC and Wells Fargo Securities, LLC are acting as joint bookrunning managers for the notes offering.
