Lennar Corporation, Miami (NYSE: LEN and LEN.B) announced late Tuesday that it priced an offering of $300 million of 2.95% Senior Notes due 2020 and $900 million of 4.75% Senior Notes due 2027.
The company plans to use the proceeds from the offering, which are estimated to be approximately $1.2 billion, to fund a portion of the cash consideration in connection with the Merger with CalAtlantic Homes. As previously announced, on October 29, 2017, the company, CalAtlantic Group, Inc. and a subsidiary of Lennar entered into an agreement pursuant to which CalAtlantic, subject to specified conditions, will be merged with and into the Lennar subsidiary.
The Notes were offered only to qualified institutional buyers in transactions that are exempt from the registration requirements of the Securities Act of 1933. When they are issued, the notes will be guaranteed by some of the company’s subsidiaries, but those guarantees may be suspended or released under certain circumstances.
The Notes will pay interest semi-annually on May 29 and November 29, commencing May 29, 2018.
