M.D.C. Holdings Announces Offering Of $350 Million Of 3.966% Senior Notes Due 2061

Rhea-AI Summary

M.D.C. Holdings, Inc. (NYSE: MDC) has priced a public offering of $350 million in senior notes with a 3.966% interest rate, maturing in August 2061. The notes will be general unsecured obligations and rank equally with other unsecured debts, fully guaranteed by the company's subsidiaries. Proceeds from the offering are intended for general corporate purposes, including potential debt repayment. The offering is set to close on August 6, 2021, subject to standard conditions.

Positive

• Successful pricing of $350 million senior notes indicates strong investor interest.
• Proceeds aimed at general corporate purposes may improve financial stability.

Negative

• Issuing additional debt may increase financial leverage and interest obligations.

DENVER, Aug. 3, 2021 /PRNewswire/ -- M.D.C. Holdings, Inc. (NYSE: MDC) today announced the pricing of a public offering of $350 million principal amount of 3.966% senior notes due August 2061 (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, which may include the repayment of indebtedness.  The offering is expected to close on August 6, 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 220,000 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, Portland, Boise and Nashville. 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 are the details of the M.D.C. Holdings senior notes offering?

M.D.C. Holdings has priced $350 million in senior notes at 3.966% interest, due August 2061.

When is the expected closure date for M.D.C. Holdings' offering?

The offering is expected to close on August 6, 2021.

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

Proceeds will be used for general corporate purposes, potentially including debt repayment.

What is the significance of the senior notes being unsecured?

Being unsecured means the notes rank equally with other unsecured debts of M.D.C. Holdings.

What is the maturity date of M.D.C. Holdings' senior notes?

The notes will mature in August 2061.