M.D.C. Holdings Announces Offering Of $350 Million Of 2.500% Senior Notes Due 2031

Rhea-AI Summary

M.D.C. Holdings, Inc. (NYSE: MDC) announced a public offering of $350 million in 2.500% senior notes due January 2031, priced at 100% of par. The notes will be unsecured obligations of MDC and are guaranteed by most of its homebuilding subsidiaries. Proceeds will be utilized for general corporate purposes. The offering is set to close on January 11, 2021, pending customary closing conditions. As one of the largest homebuilders in the U.S., MDC operates various subsidiaries and offers additional services such as mortgage financing and insurance.

Positive

• Successful pricing of $350 million senior notes indicates strong demand and confidence in the company.
• The 2.500% interest rate is competitive, potentially lowering financing costs for MDC.

Negative

• None.

DENVER, Jan. 6, 2021 /PRNewswire/ -- M.D.C. Holdings, Inc. (NYSE: MDC) today announced the pricing of a public offering of $350 million principal amount of 2.500% senior notes due January 2031 (the "Notes") at 100% of par. The Notes will be general unsecured obligations of MDC and will rank equally and ratably with its other general unsecured and unsubordinated indebtedness. The Notes will be fully guaranteed on an unsecured basis, jointly and severally, by most of the Company's homebuilding subsidiaries. MDC will use the proceeds of the offering for general corporate purposes.  The offering is expected to close on January 11, 2021, subject to customary closing conditions. 

The Notes will be issued pursuant to an effective shelf registration statement and are being offered by means of the prospectus included in the registration statement and the related prospectus supplement.  Copies of the prospectus supplement and accompanying prospectus relating to the offering may be obtained at no charge by visiting the SEC website at www.sec.gov.  Alternatively, copies of the final prospectus supplement and accompanying prospectus may be obtained free of charge by contacting any of the joint book-running managers for the offering at their numbers below:

Citigroup Global Markets Inc.	1-800-831-9146
U.S. Bancorp Investments, Inc.	1-877-558-2607
Truist Securities, Inc.	1-800-685-4786

This press release does not constitute an offer to sell, or the solicitation of an offer to buy, the Notes, nor shall there be any sale of the Notes in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. 

About MDC

M.D.C. Holdings, Inc. was founded in 1972. MDC's homebuilding subsidiaries, which operate under the name Richmond American Homes, have built and financed the American Dream for more than 210,000 homebuyers since 1977.  MDC's commitment to customer satisfaction, quality and value is reflected in each home its subsidiaries build. MDC is one of the largest homebuilders in the United States. Its subsidiaries have homebuilding operations across the country, including the metropolitan areas of Denver, Colorado Springs, Salt Lake City, Las Vegas, Phoenix, Tucson, Riverside-San Bernardino, Los Angeles, San Diego, Orange County, San Francisco Bay Area, Sacramento, Washington D.C., Baltimore, Orlando, Jacksonville, Seattle and Portland. MDC's subsidiaries also provide mortgage financing, insurance and title services, primarily for Richmond American homebuyers, through HomeAmerican Mortgage Corporation, American Home Insurance Agency, Inc. and American Home Title and Escrow Company, respectively. M.D.C. Holdings, Inc. is traded on the New York Stock Exchange under the symbol "MDC." For more information, visit www.mdcholdings.com.

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SOURCE M.D.C. Holdings, Inc.

FAQ

What is the significance of M.D.C. Holdings' recent public offering of senior notes?

The offering of $350 million in senior notes allows MDC to secure financing at a competitive interest rate of 2.500% for general corporate purposes.

When is the closing date for M.D.C. Holdings' senior notes offering?

The offering is expected to close on January 11, 2021, subject to customary closing conditions.

What is the maturity date for the senior notes issued by M.D.C. Holdings?

The senior notes are due in January 2031.

How will M.D.C. Holdings utilize the proceeds from the senior notes?

MDC will use the proceeds for general corporate purposes.

Are the senior notes being offered by M.D.C. Holdings secured?

No, the senior notes are unsecured obligations of MDC but are guaranteed by most of its homebuilding subsidiaries.