Taylor Morrison Prices 5.125% Senior Unsecured Notes Offering

Rhea-AI Summary

Taylor Morrison Home Corporation (NYSE: TMHC) has announced a pricing increase for its senior notes offering, raising the aggregate principal amount from $400 million to $500 million. The Senior Notes, set to mature in 2030 and bearing an interest rate of 5.125% annually, will have semi-annual payments starting February 1, 2021. The offering closes on July 22, 2020, and proceeds will be used to redeem $266.9 million of its 6.00% Senior Notes due 2023 and $333.1 million of its 5.875% Senior Notes due 2025.

Positive

• Increased size of Senior Notes offering from $400 million to $500 million.
• Interest rate set at a competitive 5.125%, attracting potential investors.

Negative

• Redeeming $266.9 million of 6.00% Senior Notes and $333.1 million of 5.875% Senior Notes may indicate previous financial pressure.
• The offering is unsecured, raising potential risks for investors.

SCOTTSDALE, Ariz., July 8, 2020 /PRNewswire/ -- Taylor Morrison Home Corporation (NYSE: TMHC) ("TMHC") today announced that Taylor Morrison Communities, Inc. (the "Issuer") has priced its previously announced offering of senior notes due 2030 (the "Senior Notes"). The size of the notes offering was increased from $400.0 million to $500.0 million aggregate principal amount of Senior Notes. The Senior Notes will bear interest at a rate of 5.125% per annum, payable semi-annually in cash, in arrears, on each February 1 and August 1, beginning on February 1, 2021.

The closing of the offering of the Senior Notes is expected to occur on July 22, 2020 and is conditioned on customary closing conditions. The Issuer plans to use the net proceeds of this offering together with cash on hand to redeem $266.9 million aggregate principal amount of its 6.00% Senior Notes due 2023 (the "2023 Notes") and $333.1 million aggregate principal amount of its 5.875% Senior Notes due 2025 (the "2025 Notes"). The Issuer today delivered notices of redemption to holders of the 2023 Notes and 2025 Notes, respectively stating that $266.9 million aggregate principal amount of its 2023 Notes will be redeemed on July 22, 2020 and $333.1 million aggregate principal amount of its 2025 Notes will be redeemed on July 22, 2020. 

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 amount of the new Senior Notes offering by TMHC?

The new Senior Notes offering by Taylor Morrison Home Corporation is priced at $500 million.

When will TMHC's Senior Notes mature?

The Senior Notes will mature in 2030.

What is the interest rate on the Senior Notes issued by TMHC?

The Senior Notes bear an interest rate of 5.125% per annum.

What will TMHC do with the proceeds from the Senior Notes offering?

TMHC plans to use the proceeds to redeem $266.9 million of its 6.00% Senior Notes due 2023 and $333.1 million of its 5.875% Senior Notes due 2025.

When is the closing date for TMHC's Senior Notes offering?

The closing date for the Senior Notes offering is expected to be July 22, 2020.