LGI Homes Announces Pricing of $300 Million of Unsecured Senior Notes due 2029
15 June 2021 - 8:28AM
LGI Homes, Inc. (NASDAQ:LGIH) (“LGI Homes” or the “Company”) today
announced that it has priced its previously announced offering (the
“Offering”) of $300 million aggregate principal amount of unsecured
Senior Notes due 2029 (the “Notes”) to persons reasonably believed
to be qualified institutional buyers in the United States pursuant
to Rule 144A under the Securities Act of 1933, as amended (the
“Securities Act”), and to certain non-U.S. persons in transactions
outside the United States pursuant to Regulation S under the
Securities Act.
The Notes will bear interest at a rate of 4.000%
per annum. The Notes will be initially guaranteed, jointly and
severally, on a senior unsecured basis by the Company’s
subsidiaries that guarantee the Company’s obligations under its
revolving credit facility. The sale of the Notes is expected to be
completed on June 28, 2021, subject to customary closing
conditions.
The Company intends to use the net proceeds from
the Offering, plus cash on hand, to fund the previously announced
redemption of all of the Company’s outstanding 6.875% Senior Notes
due 2026 (the “2026 Senior Notes”). As of the date of this press
release, $300 million aggregate principal amount of the 2026 Senior
Notes are outstanding. The Offering is not conditioned on the
redemption of the 2026 Senior Notes. Pending application of the net
proceeds of the Offering for the foregoing purpose, the Company may
repay all or a portion of the outstanding borrowings under its
revolving credit facility, and, to the extent not used to repay
such outstanding borrowings, the Company expects to invest such net
proceeds in short-term liquid investments.
The offer and sale of the Notes and the related
guarantees have not been and will not be registered under the
Securities Act or the securities laws of any other jurisdiction and
may not be offered or sold in the United States or to, or for the
benefit of, U.S. persons absent registration under, or an
applicable exemption from, the registration requirements of the
Securities Act.
This press release does not constitute an offer
to sell or a solicitation of an offer to buy the Notes or any other
security and shall not constitute an offer, solicitation or sale in
any state or jurisdiction in which, or to any persons to whom, such
an offer, solicitation or sale would be unlawful. Any offers of the
Notes will be made only by means of a private offering
memorandum.
About LGI Homes, Inc.
Headquartered in The Woodlands, Texas, LGI
Homes, Inc. engages in the design, construction and sale of homes
in Texas, Arizona, Florida, Georgia, New Mexico, Colorado, North
Carolina, South Carolina, Washington, Tennessee, Minnesota,
Oklahoma, Alabama, California, Oregon, Nevada, West Virginia,
Virginia and Pennsylvania. Since 2018, LGI Homes has been ranked as
the 10th largest residential builder in the United States based on
units closed. The Company has a notable legacy of more than 18
years of homebuilding operations, over which time it has closed
more than 45,000 homes. For more information about the Company and
its new home developments, please visit the Company’s website at
www.lgihomes.com.
Forward-Looking Statements
Any statements made in this press release that
are not statements of historical fact, including statements about
the Company’s beliefs and expectations, are forward-looking
statements within the meaning of the federal securities laws, and
should be evaluated as such. Forward-looking statements include
statements relating to, among other things, statements about the
closing of the Offering, the intended use of proceeds or other
aspects of the Offering and the Notes, and the redemption of the
2026 Senior Notes. Forward-looking statements can generally be
identified by the use of forward-looking terminology, including the
terms “anticipate,” “believe,” “continue,” “could,” “estimate,”
“expect,” “forecast,” “goal,” “intend,” “may,” “objective,” “plan,”
“potential,” “predict,” “projection,” “should,” “will” or, in each
case, their negative, or other variations or comparable
terminology. For more information concerning factors that could
cause actual results to differ materially from those contained in
the forward-looking statements, please refer to the “Risk Factors”
section in the Company’s Annual Report on Form 10-K for the fiscal
year ended December 31, 2020, including the “Cautionary Statement
about Forward-Looking Statements” subsection within the “Risk
Factors” section, the “Risk Factors” and “Cautionary Statement
about Forward-Looking Statements” sections in the Company’s
Quarterly Report on Form 10-Q for the quarter ended March 31, 2021,
and subsequent filings by the Company with the Securities and
Exchange Commission. The Company bases these forward-looking
statements on its current expectations, plans and assumptions that
it has made in light of its experience in the industry, as well as
its perceptions of historical trends, current conditions, expected
future developments and other factors it believes are appropriate
under the circumstances and at such time. As you read and consider
this press release, you should understand that these statements are
not guarantees of future performance or results. The
forward-looking statements are subject to and involve risks,
uncertainties and assumptions and you should not place undue
reliance on these forward-looking statements. Although the Company
believes that these forward-looking statements are based on
reasonable assumptions at the time they are made, you should be
aware that many factors could cause the Company’s actual results to
differ materially from those expressed in the forward-looking
statements. The Company undertakes no obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise. If the Company does update
one or more forward-looking statements, there should be no
inference that it will make additional updates with respect to
those or other forward-looking statements.
CONTACT: |
Joshua D.
Fattor |
|
Vice President of Investor Relations |
|
(281) 210-2619 |
|
investorrelations@lgihomes.com |
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