Taylor Morrison Announces Proposed Senior Unsecured Notes Offering

Rhea-AI Summary

Taylor Morrison Home Corporation (TMHC) announced plans to offer $400 million of senior notes due 2030, aiming to utilize proceeds along with cash to redeem approximately $222.4 million of 6.00% senior notes due 2023 and $277.6 million of 5.875% senior notes due 2025. The new senior notes will be unsecured, guaranteed by TMHC's subsidiaries, and offered to qualified institutional buyers under Rule 144A. The issuance has not been registered under the Securities Act, and this announcement does not constitute an offer to sell or buy the notes.

Positive

• The offering of $400 million in senior notes could provide TMHC with necessary capital for refinancing existing debt.
• Redeeming senior notes with higher interest rates (6.00% and 5.875%) could lead to reduced interest expenses and improved financial stability.

Negative

• The new senior notes are unsecured, which may increase financial risk if the company faces downturns.
• The offering does not address any new capital for expansion or operational improvements; it is primarily a debt refinancing effort.

SCOTTSDALE, Ariz., July 8, 2020 /PRNewswire/ -- Taylor Morrison Home Corporation (NYSE: TMHC)("TMHC") today announced that Taylor Morrison Communities, Inc. (the "Issuer") intends to offer $400.0 million aggregate principal amount of senior notes due 2030 (the "Senior Notes").

The Issuer plans to use the net proceeds of this offering together with cash on hand to redeem approximately $222.4 million aggregate principal amount of its 6.00% Senior Notes due 2023 and approximately $277.6 million aggregate principal amount of its 5.875% Senior Notes due 2025.

The Senior Notes will be unsecured and guaranteed on a senior unsecured basis by the same subsidiaries of TMHC that guarantee, or are obligors of, the Issuer's existing senior unsecured notes.

The Senior Notes will be offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to persons outside of the United States in compliance with Regulation S under the Securities Act. The issuance and sale of the Senior Notes have not been registered under the Securities Act, and the Senior Notes may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

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

Forward-Looking Statements

This press release contains forward-looking statements. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to TMHC's operations and business environment, all of which are difficult to predict and many of which are beyond TMHC's control.

CONTACT: Investor Relations
Taylor Morrison Home Corporation
(480) 734-2060
investor@taylormorrison.com

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SOURCE Taylor Morrison

FAQ

What is the purpose of Taylor Morrison's $400 million senior notes offering?

The offering aims to refinance existing debt by redeeming higher interest senior notes due in 2023 and 2025.

When are the new senior notes from Taylor Morrison due?

The new senior notes are due in 2030.

What is the current interest rate of the senior notes Taylor Morrison intends to redeem?

Taylor Morrison intends to redeem senior notes with interest rates of 6.00% and 5.875%.

Who is eligible to purchase the new senior notes from TMHC?

The new senior notes will be offered to qualified institutional buyers under Rule 144A.

Are the new senior notes secured or unsecured?

The new senior notes will be unsecured.