CalAtlantic Group, Inc. (NYSE: CAA) today announced the proposed public offering by the Company of $300 million aggregate principal amount of senior notes. J.P. Morgan Securities LLC, Citigroup, Mizuho Securities USA Inc., BofA Merrill Lynch, Credit Suisse Securities (USA) LLC and Wells Fargo Securities, LLC are acting as joint book-running managers and BNP Paribas Securities Corp., SunTrust Robinson Humphrey, Inc., Comerica Securities, Inc. and U.S. Bancorp Investments, Inc. are acting as co-managers for the proposed notes offering.
The Company expects that the notes will have a ten-year maturity. However, the interest rate, maturity date and other terms of the notes will be determined at the time of pricing of the offering by the Company and the underwriters. The notes will be guaranteed on a senior unsecured basis by the Company's subsidiaries that guarantee the Company's outstanding notes.
The Company intends to use a portion of the net proceeds of the notes offering to repay or repurchase the Company's 10 3⁄4% Senior Notes due September 2016, 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.