Empire Communities Corp. has priced a dual-tranche offering of five-year senior unsecured notes comprising U.S. dollar- and Canadian dollar-denominated tranches, sources said. J.P. Morgan and RBC Capital Markets were global coordinators for the deal.
Proceeds will be used to repay existing debt.
Empire Communities Corp., based in Vaughan, Canada, operates as a homebuilder. The company also offers commercial, industrial, low-rise and high-rise residential, luxury new homes and affordable housing. Terms:
| Issuer | Empire Communities Corp. | |
| Ratings | B-/B- (S&P/Fitch) | |
| Amount | $400 million | |
| Issue | Senior unsecured notes (144A/Reg S for life) | |
| Coupon | 7.00% | |
| Price | 100 | |
| Yield | 7.00% | |
| Spread | T+662 | |
| Maturity | Dec. 15, 2025 | |
| Call | Non-call two (first call at par +50% coupon) | |
| Global coordinators | JPM (lead)/RBC | |
| Joint bookrunner | CIBC | |
| Lead managers | Scotia/BMO/Zelman | |
| Price talk | 7.25% area | |
| Notes | Make-whole at T+50; change of control put at 101; up-to-35% equity claw at 107% until Dec. 15, 2022; make-whole at T+50 |
|
| Issuer | Empire Communities Corp. | |
| Ratings | B-/B- (S&P/Fitch) | |
| Amount | C$150 million | |
| Issue | Senior unsecured notes (Canadian private placement) | |
| Coupon | 7.375% | |
| Price | 100 | |
| Yield | 7.375% | |
| Spread | T+690.2 | |
| Maturity | Dec. 15, 2025 | |
| Call | Non-call two (first call at par +50% coupon) | |
| Price talk | 7.5% area | |
| Notes | Make-whole at GoC+50; change of control put at 101; up-to-40% equity claw at 107.375% until Dec. 15, 2022 |
|
| Global coordinators | RBC (lead)/JPM | |
| Joint bookrunners | CIBC/Scotia | |
| Lead manager | BMO | |
| Trade (date) | Dec. 8, 2020 | |
| Settle | Dec. 22, 2020 (T+10) |