Meritage Homes Corp. (NYSE:MTH), Scottsdale, on Tuesday said it fallen short of its goal on a tender offer for all of its 7% 2014 notes while a companion offering to buyback 6.25% notes due in 2015 had been oversubscribed. Both early tender offers expired at midnight April 19.
At the deadline, Meritage had received $107.1 million of a possible $130 million in 7% notes due 2014. It was seeking to redeem any and all of those notes.
The company received $139.9 million in the 6.25% notes due in 2015. It plans to redeem $65 million of those notes. Notes accepted for purchase will be subject to proration as outlined in the offer terms.
Both the Any and All Tender Offer and the Dutch Auction Tender Offer will expire at 12:00 midnight, New York City time, on May 3, 2010, unless extended, after which the Company will announce final results of the tender offers.
As previously disclosed in the press releases issued on April 6, 2010, the tender offers are part of a series of related financing transactions that also included a private placement of $200 million aggregate principal amount of 7.15% Senior Unsecured Notes due 2020, which was completed on April 13, 2010.
Meritage retained Citi and J.P. Morgan to serve as dealer managers for the tender offer. Global Bondholder Services Corporation was retained to serve as the depositary and information agent.