Meritage Homes Corp. (MTH) said Tuesday that it has priced a $300 million aggregate principal amount of senior unsecured notes due 2022.
The bonds were priced with a coupon of 7.00% and sold at par. The expected closing date for the private placement of the notes is April 10.
Meritage plans to use the net proceeds from the offering to repurchase or redeem all $285 million aggregate principal amount of its 6.25% Senior Notes due 2015. In addition, the company plans to use the remaining net proceeds, together with available cash, to repurchase about $26 million aggregate principal amount of its outstanding 7.731% Senior Subordinated Notes due 2017.
Adjusting for the offering of the notes and the related transactions described above, as of December 31, 2011, Meritage would have had about $313 million of cash and cash equivalents outstanding and about $596 million of total debt outstanding.
by RTT Staff Writer
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