Meritage Homes Announces Offering of $300 Million of Senior Unsecured Notes Due 2027
May 22 2017 - 8:37AM
Meritage Homes Corporation (NYSE:MTH), a leading U.S. homebuilder,
today announced its intention to offer, subject to market and other
conditions, $300 million aggregate principal amount of senior
unsecured notes due 2027 (the “notes”) to qualified institutional
buyers pursuant to Rule 144A under the Securities Act of 1933, as
amended (the “Securities Act”), and outside the United States to
persons other than U.S. persons in reliance upon Regulation S under
the Securities Act.
Final terms of the notes, including the interest
rate, maturity date and other terms, will be determined through
negotiations between Meritage and the initial purchasers of the
notes.
Meritage intends to use the net proceeds from the
offering of the notes for repayment of outstanding borrowings under
the Company’s unsecured revolving credit facility and for general
corporate purposes, which many include, among other
things, the repurchase, tender for or redemption of the
Company’s 1.875% senior unsecured convertible notes due 2032.
This announcement is neither an offer to sell nor a
solicitation of an offer to buy any of these securities and shall
not constitute an offer, solicitation, or sale in any jurisdiction
in which such offer, solicitation, or sale is unlawful. The
securities will not be registered under the Securities Act or any
state securities laws, and unless so registered, may not be offered
or sold in the United States except pursuant to an exemption from
the registration requirements of the Securities Act and applicable
state laws.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements include management's intention
to offer $300 million of notes and the intended use of the net
proceeds from the issuance of the notes.
Such statements are based upon the current beliefs
and expectations of Company management, and current market
conditions, which are subject to significant uncertainties and
fluctuations. Actual results may differ from those set forth in the
forward-looking statements. The Company makes no commitment, and
disclaims any duty, to update or revise any forward-looking
statements to reflect future events or changes in these
expectations. Meritage's business is subject to a number of risks
and uncertainties. As a result of those risks and uncertainties,
the Company's stock and note prices may fluctuate dramatically.
These risks and uncertainties include, but are not limited to, the
following: the availability and cost of finished lots and
undeveloped land; changes in interest rates and the availability
and pricing of residential mortgages; shortages in the availability
and cost of labor; changes in tax laws that adversely impact us or
our homebuyers; the success of our strategic initiatives; the
ability of our potential buyers to sell their existing homes;
cancellation rates; inflation in the cost of materials used to
develop communities and construct homes; the adverse effect of
slower absorption rates; impairments of our real estate inventory;
a change to the feasibility of projects under option or contract
that could result in the write-down or write-off of earnest or
option deposits; our potential exposure to natural disasters or
severe weather conditions; competition; construction defect and
home warranty claims; failures in health and safety performance;
our success in prevailing in contested tax positions; our ability
to obtain performance bonds in connection with our development
work; the loss of key personnel; our failure to comply with laws
and regulations; our limited geographic diversification;
fluctuations in quarterly operating results; our level of
indebtedness; our ability to obtain financing; our ability to
successfully integrate acquired companies and achieve anticipated
benefits from these acquisitions; our compliance with government
regulations; the effect of legislative and other governmental
actions, orders, policies or initiatives that impact housing, or
other initiatives that seek to restrain growth of new housing
construction or similar measures; legislation relating to energy
and climate change; the replication of our energy-efficient
technologies by our competitors; our exposure to information
technology failures and security breaches; and other factors
identified in documents filed by the Company with the Securities
and Exchange Commission, including those set forth in our Form 10-K
for the year ended December 31, 2016 and Form 10-Q for the quarter
ended March 31, 2017, under the caption "Risk Factors," which can
be found on the Company’s website.
Brent Anderson, VP Investor Relations
(972) 580-6360 (office)
Brent.Anderson@meritagehomes.com
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