M/I Homes, Inc. Announces Proposed Offering of Senior Notes

Rhea-AI Summary

M/I Homes, Inc. (NYSE: MHO) announced a proposed offering of $300 million in senior notes due 2030, subject to market conditions. The company plans to use $250 million of the proceeds to redeem its 5.625% senior notes due 2025, with the remaining funds allocated for general corporate purposes. The offering will be conducted under Rule 144A and Regulation S, and is unregistered under the Securities Act. This announcement highlights M/I Homes' strategic financial management and ongoing commitment to its growth and corporate initiatives.

Positive

• Proceeds of $250 million from the offering are intended to redeem existing senior notes, improving the company's debt structure.
• The offering supports general corporate purposes, potentially enabling future growth and operational flexibility.

Negative

• The offering is unregistered, limiting immediate market opportunities for investors.
• The planned redemption of senior notes may indicate cash flow constraints or refinancing pressures.

COLUMBUS, Ohio, Aug. 9, 2021 /PRNewswire/ -- M/I Homes, Inc. (NYSE: MHO) announced today that it plans to offer, subject to market and other conditions, $300 million aggregate principal amount of senior notes due 2030 (the "New Senior Notes") in an unregistered offering pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended (the "Securities Act").  The offering of the New Senior Notes has not been registered under the Securities Act or any state securities laws, and the New Senior Notes may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. 

The Company intends to use a portion of the net proceeds from this offering to redeem all $250 million aggregate principal amount of its outstanding 5.625% senior notes due 2025 (the "2025 Senior Notes"). The Company intends to use the balance of the net proceeds for general corporate purposes. This press release does not constitute a notice of redemption with respect to the 2025 Senior Notes.

This press release is neither an offer to sell nor the solicitation of an offer to buy any of the New Senior Notes and shall not constitute an offer, solicitation or sale in any jurisdiction in which such an offer, solicitation or sale would be unlawful.

M/I Homes, Inc. is one of the nation's leading builders of single-family homes, having sold nearly 140,000 homes. The Company's homes are marketed and sold primarily under the M/I Homes Brand. The Company has homebuilding operations in Columbus and Cincinnati, Ohio; Indianapolis, Indiana; Chicago, Illinois; Minneapolis/St. Paul, Minnesota; Detroit, Michigan; Tampa, Sarasota and Orlando, Florida; Austin, Dallas/Fort Worth, Houston and San Antonio, Texas; and Charlotte and Raleigh, North Carolina.

Certain statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "anticipates," "targets," "envisions," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," variations of such words and similar expressions are intended to identify such forward-looking statements. These statements involve a number of risks and uncertainties. Any forward-looking statements that we make herein and in any future reports and statements are not guarantees of future performance, and actual results may differ materially from those in such forward-looking statements as a result of various factors, including, without limitation, factors relating to the economic environment, the impact of the COVID-19 pandemic, interest rates, availability of resources, competition, market concentration, land development activities, construction defects, product liability and warranty claims and various governmental rules and regulations, as more fully discussed in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the year ended December 31, 2020, as the same may be updated from time to time in our subsequent filings with the Securities and Exchange Commission. All forward-looking statements made in this press release are made as of the date hereof, and the risk that actual results will differ materially from expectations expressed herein will increase with the passage of time. We undertake no duty to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. However, any further disclosures made on related subjects in our subsequent filings, releases or presentations should be consulted.

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SOURCE M/I Homes, Inc.

FAQ

What is M/I Homes' recent offering related to senior notes?

M/I Homes announced a proposed offering of $300 million in senior notes due 2030.

How does M/I Homes plan to use the proceeds from the senior notes offering?

The company plans to use $250 million to redeem existing 5.625% senior notes due 2025 and the rest for general corporate purposes.

What are the implications of M/I Homes' senior notes offering for shareholders?

The offering could improve the company's debt management but may also indicate cash flow concerns.

When are the new senior notes from M/I Homes due?

The new senior notes are due in 2030.

Is the offering of senior notes from M/I Homes registered?

No, the offering is unregistered under the Securities Act.