CalAtlantic Group, Inc. (NYSE: CAA) late Thursday announced the pricing of its previously announced public offering and the increase in the amount of the offering to $225 million aggregate principal amount of senior notes.
The notes consist of $125 million aggregate principal amount of additional notes to the company’s existing 5.875% senior notes due 2024 and $100 million aggregate principal amount of additional notes to the company’s existing 5.25% senior notes due 2026. The additional senior notes due 2024 were priced at 104.5% of their face value to yield 5.152%, and the additional senior notes due 2026 were priced at 98.5% of their face value to yield 5.459%.
Mizuho Securities USA Inc. acted as sole bookrunning manager for the notes offering. The notes will be guaranteed on a senior unsecured basis by the company’s subsidiaries that guarantee the company’s outstanding notes.
CAA plans to use the net proceeds of the notes offering to repay or repurchase the company’s 8.4% Senior Notes due May 2017, and, pending the use of the net proceeds for such purpose, for general corporate purposes, which may include land acquisition and development, home construction, repurchases of the company’s common stock and repayment of the company’s debt.
