CalAtlantic Group, Inc. Announces Upsizing and Pricing of $350 Million of Senior Notes Due 2027

ARLINGTON, Va., June 6, 2017 /PRNewswire/ -- CalAtlantic Group, Inc. (NYSE: CAA) today announced the pricing of its previously announced public offering of its senior notes and an increase in the amount of the offering to $350 million aggregate principal amount of the notes.  Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC and Wells Fargo Securities, LLC are acting as joint bookrunning managers for the notes offering.

The notes will pay interest semi-annually in arrears at a rate of 5.000% per year and will mature on June 15, 2027, unless earlier redeemed or repurchased. 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 the net proceeds of the notes offering for general corporate purposes, which may include acquisition of land or other home building companies, land development, home construction, repurchases of the Company's common stock and repayment or repurchases of the Company's debt, including the repayment or repurchase of the Company's 1.25% Senior Convertible Notes due August 2032. 

The closing of the notes offering is expected to occur on June 9, 2017, subject to customary closing conditions.

The Company has an effective registration statement (including a prospectus and a preliminary prospectus supplement for the offering to which this communication relates) on file with the Securities and Exchange Commission (the "SEC").  Before you invest, you should read the prospectus in that registration statement (including the preliminary prospectus supplement for the offering to which this communication relates) and other documents the Company has filed and will file with the SEC for more complete information about the Company and the offering.  You may obtain these documents for free by visiting EDGAR on the SEC web site at www.sec.gov.  Alternatively, copies of the prospectus supplement and related base prospectus related to this offering may be obtained from Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by telephone at 1-800-831-9146.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of such securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

About CalAtlantic Group, Inc.

CalAtlantic Group, Inc. (NYSE: CAA) offers homes in 41 Metropolitan Statistical Areas spanning 17 states.

This news release contains forward-looking statements.  These statements include but are not limited to statements regarding the expected closing of the offering and the intended use of the net proceeds from the offering.  Forward-looking statements are based on our current expectations or beliefs regarding future events or circumstances, and you should not place undue reliance on these statements.  Such statements involve known and unknown risks, uncertainties, assumptions and other factors many of which are out of the Company's control and difficult to forecast that may cause actual results to differ materially from those that may be described or implied.  The Company cannot be certain that the offering will be completed on the terms discussed above, or at all.  For a discussion of certain other risks, uncertainties and other factors affecting the statements contained in this news release, see the Company's Annual Report on Form 10-K for the year ended December 31, 2016 and subsequent Quarterly Reports on Form 10-Q.  Except as required by law, the Company assumes no, and hereby disclaims any, obligation to update any of the foregoing or any other forward-looking statements.  The Company nonetheless reserves the right to make such updates from time to time by press release, periodic report or other method of public disclosure without the need for specific reference to this news release.  No such update shall be deemed to indicate that other statements not addressed by such update remain correct or create an obligation to provide any other updates. 

Contact:

Jeff McCall, EVP & CFO (240) 532-3888, [email protected]

SOURCE CalAtlantic Group, Inc.

Related Links

http://www.calatlantichomes.com