Meritage Homes Announces Closing of $450 Million of 3.875% Senior Notes Due 2029

Rhea-AI Summary

Meritage Homes Corporation (NYSE: MTH) announced the successful closing of $450 million in 3.875% senior notes, maturing April 15, 2029, generating approximately $444 million in net proceeds.

A significant portion of these proceeds will be utilized to redeem $300 million of the company's 7.00% Senior Notes due 2022. The notes were placed under Rule 144A and Regulation S of the Securities Act, targeting qualified institutional buyers.

Positive

• Raised approximately $444 million in net proceeds from the senior notes offering.
• Plans to use proceeds to redeem higher interest 7.00% Senior Notes, potentially reducing interest expenses.

Negative

• The issuance of new senior notes may increase leverage and financial obligations.

SCOTTSDALE, Ariz., April 15, 2021 (GLOBE NEWSWIRE) -- Meritage Homes Corporation (NYSE: MTH), a leading U.S. homebuilder, today announced the closing of a $450 million aggregate principal amount of its 3.875% senior notes due April 15, 2029 (the “notes”). The completed transaction resulted in approximately $444.0 million in net proceeds to the Company. The notes were offered to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) and outside the United States to persons other than U.S. persons in reliance upon Regulation S under the Securities Act.

The Company will use a portion of the net proceeds from the notes offering to fund the redemption of all $300 million in aggregate principal amount of the Company’s 7.00% Senior Notes due 2022.

This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation, or sale in any jurisdiction in which such offer, solicitation, or sale is unlawful. The securities will not be registered under the Securities Act, or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state laws.

Contacts:	Emily Tadano, Vice President Investor Relations
	(480) 515-8979 (office)
	Investors@meritagehomes.com

FAQ

What is the amount and interest rate of Meritage Homes' new senior notes?

Meritage Homes announced $450 million in 3.875% senior notes due April 15, 2029.

What will Meritage Homes do with the proceeds from the senior notes offering?

The proceeds will be used to redeem $300 million of the company's 7.00% Senior Notes due 2022.

When do the new senior notes from Meritage Homes mature?

The new senior notes from Meritage Homes mature on April 15, 2029.

Who are the buyers of Meritage Homes' senior notes?

The senior notes were offered to qualified institutional buyers under Rule 144A and Regulation S.