MIAMI, April 19, 2017 /PRNewswire/ -- Lennar
Corporation (NYSE: LEN and LEN.B) announced today that it has
priced an underwritten public offering of $650 million of 4.50% Senior Notes due 2024 (the
"Notes"). The sale of the Notes is expected to close on
April 28, 2017, subject to customary
closing conditions. The Company plans to use the proceeds from the
offering, which are estimated to be approximately $645.8 million, after underwriting fees but
before expenses, for general corporate purposes, including the
repayment of debt, which may include the repayment, redemption or
repurchase of the Company's 12.25% senior notes due June 2017 and/or the Company's 6.875% senior
notes due 2021, which are callable at 103.4% of their principal
amount in August 2017. The Company
expects to realize annualized interest savings of approximately
$37 million if the net proceeds of
$645.8 million from the offering,
together with cash on hand, are used to repay $400 million in principal amount of its 12.25%
senior notes in June 2017 and to
redeem $250 million in principal
amount of its 6.875% senior notes in August
2017.
The Notes will have an interest rate of 4.50% per annum and will
pay interest semi-annually on April
30 and October 30, commencing
October 30, 2017.
Deutsche Bank Securities Inc., Citigroup Global Markets Inc.,
J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner &
Smith Incorporated, Mizuho Securities USA LLC, Goldman, Sachs & Co., RBC Capital
Markets, LLC and Wells Fargo Securities, LLC are acting as Joint
Book-Running Managers in the offering. Fifth Third Securities, Inc.
is acting as Co-Manager in the offering.
The Company has an effective registration statement, including a
prospectus and a preliminary prospectus supplement for the
offering, on file with the Securities and Exchange Commission (the
"SEC"). Before you invest, you should read the prospectus in that
registration statement, including the preliminary prospectus
supplement for the offering, and other documents that the Company
has filed and will file with the SEC for more complete information
about the Company and the offering. You may obtain a copy of the
preliminary prospectus supplement, the accompanying prospectus and
the final prospectus supplement, when available, without charge by
visiting EDGAR on the SEC's website at www.sec.gov. Alternatively,
copies of any of those documents may be obtained from Deutsche Bank
Securities Inc., Attn.: Prospectus Group, 60 Wall Street,
New York, NY 10005-2836, Email:
prospectus.CPDG@db.com, Tel: (800) 503-4611.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such
jurisdiction.
About Lennar
Lennar Corporation, founded in 1954, is one of the nation's
largest builders of quality homes for all generations. The Company
builds affordable, move-up and retirement homes primarily under the
Lennar brand name. Lennar's Financial Services segment provides
mortgage financing, title insurance and closing services for both
buyers of the Company's homes and others. Lennar's Rialto segment
is a vertically integrated asset management platform focused on
investing throughout the commercial real estate capital structure.
Lennar's Multifamily segment is a nationwide developer of
high-quality multifamily rental properties.
Note Regarding Forward-Looking Statements
Some of the statements in this press release, and in the
prospectus and the prospectus supplement referred to in it, are
"forward-looking statements," as that term is defined in the
Private Securities Litigation Reform Act of 1995, including
statements regarding the expected closing of the offering of the
Notes, the intended use of proceeds and the interest savings from
the intended use of proceeds. These forward-looking statements are
subject to risks, uncertainties and assumptions. Accordingly, these
forward-looking statements should be evaluated with consideration
given to the many risks and uncertainties that could cause actual
results and events to differ materially from those in the
forward-looking statements, including the risk that the offering of
the Notes cannot be successfully completed, the risk that we will
not use the proceeds in the manner anticipated and including those
risks detailed in the Company's filings with the SEC, including the
"Risk Factors" section of the Company's Annual Report on Form 10-K
for the fiscal year ended November 30,
2016, and the prospectus and prospectus supplement delivered
in connection with the offering. It is not possible for management
to predict all such risk factors or to assess the impact of such
risks on our business. Accordingly, we undertake no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events, or otherwise.
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SOURCE Lennar Corporation