Lennar Sells $435 Million of Convertible Senior Notes

MIAMI, Nov. 4, 2010 /PRNewswire/ -- Lennar Corporation (NYSE: LEN and LEN.B) announced today that it has agreed to sell $435 million principal amount of 2.75% Convertible Senior Notes due 2020 to initial purchasers, who resold the Convertible Senior Notes to qualified institutional buyers in transactions that are exempt from the registration requirements of the Securities Act of 1933, as amended, under Rule 144A. The Convertible Senior Notes are expected to be delivered and paid for on November 10, 2010. The initial purchasers of the Convertible Senior Notes will have the option to purchase up to an additional $65 million principal amount of Convertible Senior Notes to cover over-allotments.

In certain circumstances, the Convertible Senior Notes will be convertible into cash, shares of Lennar's Class A common stock or a combination of cash and shares of Lennar's Class A common stock, at Lennar's election, at the initial conversion rate of 45.1794 shares of common stock per $1,000 principal amount of Convertible Senior Notes, which is equivalent to an initial conversion price of approximately $22.13 per share of Lennar's Class A common stock, subject to anti-dilution adjustments. The conversion price is approximately 40% above the $15.81 per share closing price of the Class A common stock on November 4, 2010. Holders of Convertible Senior Notes will have the right to require Lennar to repurchase them for cash equal to 100% of their principal amount, plus accrued but unpaid interest, on December 15, 2015. Lennar will have the right to redeem the Convertible Senior Notes at any time after December 20, 2015 for 100% of their principal amount, plus accrued but unpaid interest.

The Convertible Senior Notes will mature on December 15, 2020, unless they are redeemed, repurchased or converted before that date.

Lennar plans to use the net proceeds from the sale of the Convertible Senior Notes for general corporate purposes, which may include the repayment or repurchase of its existing senior notes or other indebtedness, purchases of, or investments in, portfolios of distressed mortgage or other debt instruments, and acquisitions of land suitable for residential development.

None of the Convertible Senior Notes, guarantees of the Convertible Senior Notes or the Class A common stock that may be issued upon conversion of the Convertible Senior Notes have been registered under the Securities Act of 1933, as amended. They may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of that Act.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the Convertible Senior Notes in any jurisdiction in which such an offer or sale would be unlawful. It is issued pursuant to Rule 135c under the Securities Act of 1933.

SOURCE Lennar Corporation