PulteGroup, Inc. (NYSE: PHM) announced Tuesday that it has priced $1.0 billion in aggregate principal amount of senior unsecured notes, consisting of $400 million aggregate principal amount of its existing 4.250% senior notes due March 1, 2021, and $600 million aggregate principal amount of 5.000% senior notes due January 15, 2027.
The new senior notes due 2021 were offered to the public at 103.500% of the principal amount with a yield to maturity of 3.419% and the senior notes due 2027 were offered to the public at par with a yield to maturity of 5.000%. The offering is expected to close on July 29, 2016, subject to customary closing conditions.
PulteGroup intends to use the net proceeds of the offering to repay the remaining $400 million of borrowings outstanding under its term loan facility, to repay any borrowings outstanding under its revolving credit facility and for general corporate purposes, which may include share repurchases, repayment of other indebtedness and acquisition and development of land.
J.P. Morgan Securities LLC, BofA Merrill Lynch, BB&T Capital Markets, a division of BB&T Securities, LLC, Citigroup Global Markets Inc., SunTrust Robinson Humphrey, Inc., and Wells Fargo Securities, LLC, are serving as joint book-running managers of the public offering.