LGI Homes Announces Pricing of $400 Million of Unsecured Senior Notes due 2032
LGI Homes has announced the pricing of $400 million in unsecured Senior Notes due 2032. The Notes will carry a 7.000% annual interest rate and will be guaranteed by the Company's subsidiaries that guarantee its revolving credit facility. The sale is expected to complete on November 15, 2024, subject to closing conditions. The Company plans to use the net proceeds to repay a portion of its outstanding revolving credit facility borrowings. The Notes are being offered to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S of the Securities Act.
LGI Homes ha annunciato la quotazione di 400 milioni di dollari in Note Senior non garantite con scadenza nel 2032. Le Note avranno un tasso di interesse annuale del 7,000% e saranno garantite dalle controllate della Società che garantiscono la sua linea di credito revolving. Si prevede che la vendita si concluda il 15 novembre 2024, soggetta alle condizioni di chiusura. La Società intende utilizzare il ricavato netto per ripagare una parte dei prestiti in essere della sua linea di credito revolving. Le Note sono offerte a compratori istituzionali qualificati ai sensi della Regola 144A e a persone non statunitensi ai sensi del Regolamento S della Securities Act.
LGI Homes ha anunciado la emisión de 400 millones de dólares en Notas Senior no garantizadas con vencimiento en 2032. Las Notas tendrán una tasa de interés anual del 7.000% y estarán garantizadas por las filiales de la Compañía que respaldan su línea de crédito revolvente. Se espera que la venta se complete el 15 de noviembre de 2024, sujeta a condiciones de cierre. La Compañía planea utilizar los ingresos netos para reembolsar parte de sus préstamos pendientes de la línea de crédito revolvente. Las Notas se ofrecen a compradores institucionales calificados bajo la Regla 144A y a personas no estadounidenses bajo el Reglamento S de la Ley de Valores.
LGI Homes는 2032년 만기인 4억 달러 규모의 무담보 고급 채권 발행을 발표했습니다. 이 채권은 연 7.000%의 이자율이 적용되며, 회사의 리볼빙 신용 시설을 보장하는 자회사들이 보증합니다. 판매는 2024년 11월 15일에 완료될 것으로 예상되며, 마감 조건이 충족되어야 합니다. 회사는 순이익금을 사용하여 미지급 리볼빙 신용 시설 대출의 일부를 상환할 계획입니다. 이 채권은 규칙 144A에 따른 적격 기관 구매자와 증권법의 규정 S에 따른 비미국인에게 제공됩니다.
LGI Homes a annoncé l'émission de 400 millions de dollars en obligations senior non garanties arrivant à échéance en 2032. Les obligations porteront un taux d'intérêt annuel de 7,000% et seront garanties par les filiales de la société qui garantissent sa facilité de crédit revolving. La vente devrait être finalisée le 15 novembre 2024, sous réserve des conditions de clôture. La société prévoit d'utiliser le produit net pour rembourser une partie de ses emprunts en cours liés à la facilité de crédit revolving. Les obligations sont proposées à des acheteurs institutionnels qualifiés conformément à la règle 144A et à des personnes non américaines conformément au règlement S de la Loi sur les valeurs mobilières.
LGI Homes hat die Preisgestaltung für 400 Millionen US-Dollar an unbesicherten Schuldverschreibungen mit Fälligkeit im Jahr 2032 bekannt gegeben. Die Schuldverschreibungen tragen einen Jahreszinssatz von 7,000% und werden von den Tochtergesellschaften des Unternehmens garantiert, die seine revolvierende Kreditfazilität absichern. Der Verkauf wird voraussichtlich am 15. November 2024 abgeschlossen sein, vorbehaltlich der Abschlussbedingungen. Das Unternehmen plant, den Nettoerlös zur Rückzahlung eines Teils seiner ausstehenden Darlehen aus der revolvierenden Kreditfazilität zu verwenden. Die Schuldverschreibungen werden qualifizierten institutionellen Käufern gemäß Regel 144A und Nicht-US-Personen gemäß Regelung S des Wertpapiergesetzes angeboten.
- Successful pricing of $400 million in Senior Notes indicates strong market confidence
- Strategic debt refinancing through revolving credit facility repayment
- 7.000% interest rate represents significant debt servicing cost
- Increased long-term debt obligation through 2032
Insights
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By refinancing revolving credit facility debt with these notes due in 2032, LGIH gains improved financial flexibility and locks in its cost of capital for an extended period. This could prove advantageous if interest rates remain elevated. However, the high coupon rate will increase annual interest expenses, potentially impacting profitability. The transaction demonstrates proactive balance sheet management but comes with increased fixed costs.
THE WOODLANDS, Texas, Nov. 12, 2024 (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 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. is a pioneer in the homebuilding industry, successfully applying an innovative and systematic approach to the design, construction and sale of homes across 36 markets in 21 states. As one of America’s fastest growing companies, LGI Homes has closed over 70,000 homes since its founding in 2003 and has delivered profitable financial results every year. Nationally recognized for its quality construction and exceptional customer service, LGI Homes was named to Newsweek’s list of the World’s Most Trustworthy Companies. LGI Homes’ commitment to excellence extends to its more than 1,000 employees, earning the Company numerous workplace awards at the local, state and national level, including the Top Workplaces USA 2024 Award.
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 and the intended use of proceeds or other aspects of the Offering and the 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, 2023, 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 Reports on Form 10-Q for the quarters ended March 31, 2024, June 30, 2024 and September 30, 2024, 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 |
| Executive Vice President, Investor Relations and Capital Markets | |
| (281) 210-2586 | |
| investorrelations@lgihomes.com |
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