LGI Homes Announces Pricing of $300 Million of Unsecured Senior Notes due 2029
LGI Homes announced the pricing of its $300 million unsecured Senior Notes due 2029. The notes will carry a 4.000% interest rate and are expected to close on June 28, 2021. Proceeds will be used to redeem all of the Company’s outstanding 6.875% Senior Notes due 2026, totaling $300 million, and may also reduce debt under its revolving credit facility or be invested in short-term liquid assets. This offering is targeted at institutional buyers and is not registered under the Securities Act.
- Issuance of $300 million unsecured Senior Notes could improve debt structure.
- Redeeming higher-interest 6.875% Senior Notes could reduce future interest expenses.
- The Company is increasing its debt load with the new offering.
- Investors face potential risks associated with the unregistered nature of the Notes.
THE WOODLANDS, Texas, June 14, 2021 (GLOBE NEWSWIRE) -- LGI Homes, Inc. (NASDAQ:LGIH) (“LGI Homes” or the “Company”) today announced that it has priced its previously announced offering (the “Offering”) of
The Notes will bear interest at a rate of
The Company intends to use the net proceeds from the Offering, plus cash on hand, to fund the previously announced redemption of all of the Company’s outstanding
The offer and sale of the Notes and the related guarantees have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States or to, or for the benefit of, U.S. persons absent registration under, or an applicable exemption from, the registration requirements of the Securities Act.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the Notes or any other security and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which, or to any persons to whom, such an offer, solicitation or sale would be unlawful. Any offers of the Notes will be made only by means of a private offering memorandum.
About LGI Homes, Inc.
Headquartered in The Woodlands, Texas, LGI Homes, Inc. engages in the design, construction and sale of homes in Texas, Arizona, Florida, Georgia, New Mexico, Colorado, North Carolina, South Carolina, Washington, Tennessee, Minnesota, Oklahoma, Alabama, California, Oregon, Nevada, West Virginia, Virginia and Pennsylvania. Since 2018, LGI Homes has been ranked as the 10th largest residential builder in the United States based on units closed. The Company has a notable legacy of more than 18 years of homebuilding operations, over which time it has closed more than 45,000 homes. For more information about the Company and its new home developments, please visit the Company’s website at www.lgihomes.com.
Forward-Looking Statements
Any statements made in this press release that are not statements of historical fact, including statements about the Company’s beliefs and expectations, are forward-looking statements within the meaning of the federal securities laws, and should be evaluated as such. Forward-looking statements include statements relating to, among other things, statements about the closing of the Offering, the intended use of proceeds or other aspects of the Offering and the Notes, and the redemption of the 2026 Senior Notes. Forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “objective,” “plan,” “potential,” “predict,” “projection,” “should,” “will” or, in each case, their negative, or other variations or comparable terminology. For more information concerning factors that could cause actual results to differ materially from those contained in the forward-looking statements, please refer to the “Risk Factors” section in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, including the “Cautionary Statement about Forward-Looking Statements” subsection within the “Risk Factors” section, the “Risk Factors” and “Cautionary Statement about Forward-Looking Statements” sections in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, and subsequent filings by the Company with the Securities and Exchange Commission. The Company bases these forward-looking statements on its current expectations, plans and assumptions that it has made in light of its experience in the industry, as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances and at such time. As you read and consider this press release, you should understand that these statements are not guarantees of future performance or results. The forward-looking statements are subject to and involve risks, uncertainties and assumptions and you should not place undue reliance on these forward-looking statements. Although the Company believes that these forward-looking statements are based on reasonable assumptions at the time they are made, you should be aware that many factors could cause the Company’s actual results to differ materially from those expressed in the forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. If the Company does update one or more forward-looking statements, there should be no inference that it will make additional updates with respect to those or other forward-looking statements.
| CONTACT: | Joshua D. Fattor |
| Vice President of Investor Relations | |
| (281) 210-2619 | |
| investorrelations@lgihomes.com |
FAQ
What is the total amount of LGIH's unsecured Senior Notes due 2029?
What interest rate will LGIH's Senior Notes carry?
When is the expected closing date for LGIH's Senior Notes offering?
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Are LGIH's Senior Notes registered under the Securities Act?
