The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from PR Newswire

Lennar Proposes To Sell Convertible Senior Notes

Thursday, November 04, 2010

Lennar Proposes To Sell Convertible Senior Notes08:00 EDT Thursday, November 04, 2010MIAMI, Nov. 4, 2010 /PRNewswire-FirstCall/ -- Lennar Corporation (NYSE: LEN and LEN.B) announced that it proposes to offer, in a private offering under SEC Rule 144A, $350 million principal amount of Convertible Senior Notes due 2020. The initial purchasers of the Convertible Senior Notes are expected to have the option to purchase up to an additional $52.5 million principal amount of Convertible Senior Notes to cover over-allotments. The Convertible Senior Notes will be offered only to qualified institutional buyers.The Convertible Senior Notes are expected to pay interest semiannually and will be convertible under specified circumstances based on a conversion rate to be determined.  Upon conversion, Lennar will pay or deliver, as applicable, cash, shares of Lennar's Class A common stock or a combination of cash and shares of Class A common stock, at Lennar's election. Holders of the 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 redeemed, repurchased or converted in accordance with their terms prior to such date.Lennar said that it 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 will be 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 CorporationFor further information: Diane Bessette, Vice President and Treasurer of Lennar Corporation, +1-305-229-6419