Meritage Homes Announces Pricing of $500 Million of 5.650% Senior Notes Due 2035
Meritage Homes (NYSE: MTH) has announced the pricing of $500 million in senior notes due 2035, with a 5.650% interest rate paid semi-annually. The offering is expected to close on March 6, 2025, subject to customary conditions.
The company plans to use the net proceeds for general corporate purposes. The offering is being managed by multiple financial institutions, including J.P. Morgan Securities, BofA Securities, and Goldman Sachs & Co. as Joint Book-Running Managers.
The notes are being offered through an effective shelf registration statement filed with the SEC, with prospectus supplements available through various channels.
Meritage Homes (NYSE: MTH) ha annunciato il prezzo di 500 milioni di dollari in obbligazioni senior con scadenza nel 2035, con un tasso d'interesse del 5,650% pagato semestralmente. Si prevede che l'offerta si chiuda il 6 marzo 2025, subordinata a condizioni consuete.
L'azienda prevede di utilizzare il ricavato netto per scopi aziendali generali. L'offerta è gestita da più istituzioni finanziarie, tra cui J.P. Morgan Securities, BofA Securities e Goldman Sachs & Co. come Joint Book-Running Managers.
Le obbligazioni sono offerte tramite una dichiarazione di registrazione a scaffale efficace presentata alla SEC, con supplementi di prospetto disponibili attraverso vari canali.
Meritage Homes (NYSE: MTH) ha anunciado el precio de 500 millones de dólares en notas senior con vencimiento en 2035, con una tasa de interés del 5,650% pagada semestralmente. Se espera que la oferta cierre el 6 de marzo de 2025, sujeto a condiciones habituales.
La compañía planea utilizar los ingresos netos para fines corporativos generales. La oferta está siendo gestionada por múltiples instituciones financieras, incluyendo J.P. Morgan Securities, BofA Securities y Goldman Sachs & Co. como Joint Book-Running Managers.
Las notas se ofrecen a través de una declaración de registro en estante efectiva presentada ante la SEC, con suplementos de prospecto disponibles a través de varios canales.
Meritage Homes (NYSE: MTH)는 2035년 만기인 5억 달러의 선순위 채권 가격을 발표했으며, 5.650%의 이자율이 반기마다 지급됩니다. 이번 공모는 2025년 3월 6일에 마감될 예정이며, 일반적인 조건에 따릅니다.
회사는 순수익을 일반 기업 목적으로 사용할 계획입니다. 이번 공모는 J.P. Morgan Securities, BofA Securities 및 Goldman Sachs & Co.를 공동 북런닝 매니저로 하는 여러 금융 기관이 관리하고 있습니다.
채권은 SEC에 제출된 유효한 선반 등록 성명을 통해 제공되며, 다양한 경로를 통해 전망서 보충자료를 이용할 수 있습니다.
Meritage Homes (NYSE: MTH) a annoncé le prix de 500 millions de dollars en obligations senior arrivant à échéance en 2035, avec un taux d'intérêt de 5,650% payé semestriellement. L'offre devrait se clôturer le 6 mars 2025, sous réserve des conditions habituelles.
La société prévoit d'utiliser le produit net à des fins d'entreprise générales. L'offre est gérée par plusieurs institutions financières, dont J.P. Morgan Securities, BofA Securities et Goldman Sachs & Co. en tant que co-responsables de livre.
Les obligations sont proposées par le biais d'une déclaration d'enregistrement à effet de rayonnage déposée auprès de la SEC, avec des compléments de prospectus disponibles via divers canaux.
Meritage Homes (NYSE: MTH) hat die Preisgestaltung von 500 Millionen Dollar in vorrangigen Anleihen mit Fälligkeit im Jahr 2035 bekannt gegeben, mit einem Zinssatz von 5,650%, der halbjährlich gezahlt wird. Es wird erwartet, dass das Angebot am 6. März 2025 schließt, vorbehaltlich üblicher Bedingungen.
Das Unternehmen plant, die Nettoerlöse für allgemeine Unternehmenszwecke zu verwenden. Das Angebot wird von mehreren Finanzinstituten verwaltet, darunter J.P. Morgan Securities, BofA Securities und Goldman Sachs & Co. als gemeinsame Buchführungsmanager.
Die Anleihen werden über eine wirksame Regulierungsanmeldung angeboten, die bei der SEC eingereicht wurde, mit Prospektzusätzen, die über verschiedene Kanäle verfügbar sind.
- Secured $500M in long-term financing
- 10-year maturity provides stable long-term funding
- Multiple top-tier investment banks supporting the offering
- 5.650% interest rate increases debt service costs
- Additional debt burden on balance sheet
- Higher interest expenses will impact future earnings
Insights
Meritage Homes' $500 million senior notes offering at
The timing of this debt issuance is notable as it comes amid the various industry challenges Meritage outlines in its risk factors, including interest rate fluctuations, material costs, labor constraints, and land acquisition challenges. The company has secured multiple major financial institutions as underwriters, including J.P. Morgan, BofA Securities, and Goldman Sachs, suggesting strong institutional support for this offering.
This debt issuance adds to Meritage's capital structure and will impact its financial ratios. The company specifically mentions "our level of indebtedness" among its risk factors, indicating management's awareness of balancing debt obligations with operational flexibility. The fixed-rate structure of these notes provides certainty in debt servicing costs through 2035, which can be advantageous in a fluctuating interest rate environment.
The broad "general corporate purposes" designation gives Meritage flexibility in deploying this capital across its operations, whether for land acquisition, operational needs, or potentially refinancing existing obligations. This financial maneuver demonstrates Meritage's continued access to capital markets as it navigates the complex homebuilding landscape outlined in its forward-looking statements.
SCOTTSDALE, Ariz., Feb. 27, 2025 (GLOBE NEWSWIRE) -- Meritage Homes Corporation (NYSE: MTH, “Meritage” or the “Company”) announced today that it has priced a registered underwritten public offering of
J.P. Morgan Securities LLC, BofA Securities, Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA LLC, Fifth Third Securities, Inc., PNC Capital Markets LLC, Regions Securities LLC, Truist Securities, Inc. and U.S. Bancorp Investments, Inc. are acting as Joint Book-Running Managers in the transaction. TCBI Securities, Inc., Wedbush Securities Inc. and Comerica Securities, Inc. are acting as Joint Co-Managers.
The offering is being made pursuant to an effective shelf registration statement that Meritage has filed with the Securities and Exchange Commission (the “SEC”) (File No. 333-279002) and only by means of a prospectus supplement and accompanying prospectus, copies of which may be obtained free of charge by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, copies of the prospectus supplement and accompanying prospectus may be obtained by contacting J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by emailing prospectus-eq_fi@jpmchase.com and postsalemanualrequests@broadridge.com; by contacting BofA Securities, Inc. at 1-800-294-1322, or by emailing dg.prospectus_requests@bofa.com; by contacting Goldman Sachs & Co. LLC at 1-866-471-2526, by facsimile at 212-902-9316, or by emailing prospectus-ny@ny.email.gs.com; by contacting Mizuho Securities USA LLC at (866) 271-7403.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Forward-Looking Statements
The information included in this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on the current beliefs and expectations of Company management and current market conditions, which are subject to significant uncertainties and fluctuations. Actual results may differ from those set forth in the forward-looking statements. The Company makes no commitment, and disclaims any duty, except as required by law, to update or revise any forward-looking statements to reflect future events or changes in these expectations. Forward-looking statements in this release include that the closing of the offering is expected to occur on March 6, 2025, subject to the satisfaction of customary closing conditions, and that Meritage intends to use the net proceeds for general corporate purposes.
Meritage’s business is subject to a number of risks and uncertainties. As a result of those risks and uncertainties, the Company’s stock and note prices may fluctuate dramatically. These risks and uncertainties include, but are not limited to, the following: increases in interest rates or decreases in mortgage availability, and the cost and use of rate locks and buy-downs; the cost of materials used to develop communities and construct homes; cancellation rates; supply chain and labor constraints; shortages in the availability and cost of subcontract labor; the ability of our potential buyers to sell their existing homes; our ability to acquire and develop lots may be negatively impacted if we are unable to obtain performance and surety bonds; the adverse effect of slow absorption rates; legislation related to tariffs; impairments of our real estate inventory; competition; home warranty and construction defect claims; failures in health and safety performance; fluctuations in quarterly operating results; our level of indebtedness; our exposure to counterparty risk with respect to our capped calls; our ability to obtain financing if our credit ratings are downgraded; our exposure to and impacts from natural disasters or severe weather conditions; the availability and cost of finished lots and undeveloped land; the success of our strategy to offer and market entry-level and first move-up homes; a change to the feasibility of projects under option or contract that could result in the write-down or write-off of earnest money or option deposits; our limited geographic diversification; our exposure to information technology failures and security breaches and the impact thereof; the loss of key personnel; changes in tax laws that adversely impact us or our homebuyers; our inability to prevail on contested tax positions; failure of our employees and representatives to comply with laws and regulations; our compliance with government regulations; liabilities or restrictions resulting from regulations applicable to our financial services operations; negative publicity that affects our reputation; potential disruptions to our business by an epidemic or pandemic, and measures that federal, state and local governments and/or health authorities implement to address it; and other factors identified in documents filed by the Company with the SEC, including those set forth in its Annual Report on Form 10-K for the year ended December 31, 2024 under the caption “Risk Factors.”
About Meritage Homes Corporation
Meritage is the fifth-largest public homebuilder in the United States, based on homes closed in 2023. The Company offers energy-efficient and affordable entry-level and first move-up homes. Operations span across Arizona, California, Colorado, Utah, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina and Tennessee.
| Contacts: | Emily Tadano, VP Investor Relations and ESG | |
| (480) 515-8979 (office) | ||
| investors@meritagehomes.com |
FAQ
What is the interest rate and maturity date for Meritage Homes' (MTH) new senior notes?
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