Meritage Homes Announces Offering of $300 Million of Senior Unsecured Notes Due 2028
March 01 2018 - 9:16AM
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 2028 (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 to repay outstanding borrowings under its revolving
credit facility of $250 million, including $175 million of
borrowings from the redemption of the Company’s 4.50% Senior Notes
due 2018, which was completed on February 26, 2018, and the
remainder for general corporate purposes.
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 on 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: demand for entry-level homes; the availability and cost
of finished lots and undeveloped land; shortages in the
availability and cost of labor; changes in interest rates and the
availability and pricing of residential mortgages; changes in tax
laws that adversely impact us or our homebuyers; inflation in the
cost of materials used to develop communities and construct homes;
the success of strategic initiatives; the ability of our potential
buyers to sell their existing homes; cancellation rates; the
adverse effect of slower absorption (order) rates; competition;
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 and adverse impacts from natural disasters or
severe weather conditions; construction defect and home warranty
claims; failures in health and safety performance; our success in
prevailing on contested tax positions; our ability to obtain
performance and surety bonds in connection with our development
work; the loss of key personnel; our failure to comply with
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; the potential adverse effects of legislative and
other governmental actions, orders, policies or initiatives that
impact our business, 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; unfavorable
publicity; 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,
2017 under the caption "Risk Factors," which can be found on our
website.
Contacts:
Brent Anderson, VP Investor Relations(972) 580-6360
(office)Brent.Anderson@meritagehomes.com
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