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Lennar Prices $650 Million Of Senior Notes Due 2024 At 4.50%

MIAMI, April 19, 2017 /PRNewswire/ -- Lennar Corporation (NYSE:LEN and LEN.B) announced today that it has priced an underwritten public offering of $650 million of 4.50% Senior Notes due 2024 (the "Notes"). The sale of the Notes is expected to close on April 28, 2017, subject to customary closing conditions. The Company plans to use the proceeds from the offering, which are estimated to be approximately $645.8 million, after underwriting fees but before expenses, for general corporate purposes, including the repayment of debt, which may include the repayment, redemption or repurchase of the Company's 12.25% senior notes due June 2017 and/or the Company's 6.875% senior notes due 2021, which are callable at 103.4% of their principal amount in August 2017. The Company expects to realize annualized interest savings of approximately $37 million if the net proceeds of $645.8 million from the offering, together with cash on hand, are used to repay $400 million in principal amount of its 12.25% senior notes in June 2017 and to redeem $250 million in principal amount of its 6.875% senior notes in August 2017.

The Notes will have an interest rate of 4.50% per annum and will pay interest semi-annually on April 30 and October 30, commencing October 30, 2017.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Mizuho Securities USA LLC, Goldman, Sachs & Co., RBC Capital Markets, LLC and Wells Fargo Securities, LLC are acting as Joint Book-Running Managers in the offering. Fifth Third Securities, Inc. is acting as Co-Manager in the offering.

The Company has an effective registration statement, including a prospectus and a preliminary prospectus supplement for the offering, 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, and other documents that the Company has filed and will file with the SEC for more complete information about the Company and the offering. You may obtain a copy of the preliminary prospectus supplement, the accompanying prospectus and the final prospectus supplement, when available, without charge by visiting EDGAR on the SEC's website at www.sec.gov. Alternatively, copies of any of those documents may be obtained from Deutsche Bank Securities Inc., Attn.: Prospectus Group, 60 Wall Street, New York, NY 10005-2836, Email: prospectus.CPDG@db.com, Tel: (800) 503-4611.

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

About Lennar

Lennar Corporation, founded in 1954, is one of the nation's largest builders of quality homes for all generations. The Company builds affordable, move-up and retirement homes primarily under the Lennar brand name. Lennar's Financial Services segment provides mortgage financing, title insurance and closing services for both buyers of the Company's homes and others. Lennar's Rialto segment is a vertically integrated asset management platform focused on investing throughout the commercial real estate capital structure. Lennar's Multifamily segment is a nationwide developer of high-quality multifamily rental properties.

Note Regarding Forward-Looking Statements

Some of the statements in this press release, and in the prospectus and the prospectus supplement referred to in it, are "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995, including statements regarding the expected closing of the offering of the Notes, the intended use of proceeds and the interest savings from the intended use of proceeds. These forward-looking statements are subject to risks, uncertainties and assumptions. Accordingly, these forward-looking statements should be evaluated with consideration given to the many risks and uncertainties that could cause actual results and events to differ materially from those in the forward-looking statements, including the risk that the offering of the Notes cannot be successfully completed, the risk that we will not use the proceeds in the manner anticipated and including those risks detailed in the Company's filings with the SEC, including the "Risk Factors" section of the Company's Annual Report on Form 10-K for the fiscal year ended November 30, 2016, and the prospectus and prospectus supplement delivered in connection with the offering. It is not possible for management to predict all such risk factors or to assess the impact of such risks on our business. Accordingly, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

 

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