M/I Homes, Inc. Announces Pricing of $400 Million of Senior Notes Due 2028
January 08, 2020 at 03:16 am IST
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M/I Homes, Inc. announced the pricing of its offering of $400 million aggregate principal amount of 4.950% senior notes due 2028 (the "New Senior Notes") at 100% of par. This represents a $50 million increase in the original offering amount of the New Senior Notes. The New Senior Notes will mature on February 1, 2028. The New Senior Notes will be offered only to qualified institutional buyers in the United States under 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 compliance with Regulation S under the Securities Act. The offering of the New Senior Notes has not been registered under the Securities Act or any state securities laws, and the New Senior Notes may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. The Company intends to use a portion of the net proceeds from this offering to redeem all $300 million aggregate principal amount of its outstanding 6.75% senior notes due 2021 (the "2021 Senior Notes"). The Company intends to use the balance of the net proceeds to repay borrowings under its $500 million unsecured revolving credit facility and, to the extent there are any net proceeds remaining thereafter, for general corporate purposes. The sale of the New Senior Notes is subject to customary closing conditions and is expected to close on January 22, 2020.
M/I Homes, Inc. is a builder of single-family homes. The Company designs, markets, constructs and sells single-family homes and attached townhomes to first-time, move-up, empty-nester, and luxury buyers. The company primarily constructs homes in planned development communities and mixed-use communities. It offers homes for sale in approximately 213 communities within 17 markets located in 10 states. The Company operates through two distinct operations: homebuilding and financial services. Its homebuilding operations are aggregated for reporting purposes into two reporting segments: the Northern and Southern regions. Its homebuilding division is engaged in the sale and construction of single-family attached and detached homes, acquisition and development of land, and the occasional sale of lots to third parties. Its financial services operations support its homebuilding operations by providing mortgage loans and title services to the customers of its homebuilding operations.