CAA Plans $200M Note Offering

Plans to retire May 2017 notes with proceeds, plus fund other operations.

1 MIN READ

CalAtlantic Group, Inc. (NYSE: CAA) Thursday said it would offer $200 million aggregate principal amount of senior notes, with a portion of the proposed new notes to be additional notes to the company’s outstanding 5.875% senior notes due 2024 and the other portion to be additional notes to the Company’s outstanding 5.25% senior notes due 2026.

Mizuho Securities USA Inc. is acting as sole bookrunning manager for the proposed notes offering. The notes will be guaranteed on a senior unsecured basis by the company’s subsidiaries that guarantee the company’s outstanding notes.

CAA intends to use the net proceeds of the notes offering to repay or repurchase the company’s 8.4% Senior Notes due May 2017, 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 common stock and repayment of debt.

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