Lennar Corporation (NYSE: LEN and LEN.B), Miami announced Thursday that it has priced an underwritten public offering of $650 million of 4.50% Senior Notes due 2024 (the “Notes”).
The sale of the Notes is expected to close on April 28, 2017, subject to customary closing conditions.
The company plans to use the proceeds from the offering, which are estimated to be approximately $645.8 million, after underwriting fees but before expenses, for general corporate purposes, including the repayment of debt, which may include the repayment, redemption or repurchase of the Company’s 12.25% senior notes due June 2017 and/or the Company’s 6.875% senior notes due 2021, which are callable at 103.4% of their principal amount in August 2017.
Lennar expects to realize annualized interest savings of approximately $37 million if the net proceeds of $645.8 million from the offering, together with cash on hand, are used to repay $400 million in principal amount of its 12.25% senior notes in June 2017 and to redeem $250 million in principal amount of its 6.875% senior notes in August 2017.
Deutsche Bank Securities Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Mizuho Securities USA LLC, Goldman, Sachs & Co., RBC Capital Markets, LLC and Wells Fargo Securities, LLC are acting as Joint Book-Running Managers in the offering. Fifth Third Securities, Inc. is acting as Co-Manager in the offering.
