Taylor Morrison Home Corp. (TMHC) Tuesday announced the pricing of its initial public offering of about 28.57 million shares of its Class A common stock at a price to the public of $22.00 per share.
The company had previously estimated to price the offering at $20 to $22 per share.
The shares will be listed on the New York Stock Exchange and will trade under the ticker symbol "TMHC" beginning on April 10.
The underwriters also have a 30-day option to purchase up to an additional about 4.29 millio shares of its Class A common stock at the initial public offering price less the underwriting discount.
The offering is expected to close on April 12.
Total net proceeds to the company from the offering, after deducting the underwriting discount, will be about $590.9 million. The company intends to use about $204.3 million of the net proceeds to purchase ownership interests in its direct operating subsidiary whose subsidiaries will then use those proceeds to redeem nearly $189.6 million of their outstanding senior notes.
The company intends to use the remaining about $386.6 million of the net proceeds, together with cash on hand, to purchase additional ownership interests in its direct operating subsidiary from its current equity sponsors and certain members of management.
Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman, Sachs & Co., J.P. Morgan Securities LLC and Zelman Partners LLC are acting as joint book-running managers for the offering.
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