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Press release from PR Newswire

Lennar Prices $350 Million of Convertible Senior Notes

Tuesday, November 22, 2011

Lennar Prices $350 Million of Convertible Senior Notes18:39 EST Tuesday, November 22, 2011MIAMI, Nov. 22, 2011 /PRNewswire/ -- Lennar Corporation (NYSE: LEN and LEN.B) announced that it has agreed to sell $350 million principal amount of its 3.25% Convertible Senior Notes due 2021 to initial purchasers, who are selling 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 SEC Rule 144A.  The Convertible Senior Notes are expected to be delivered and paid for on November 29, 2011.  The initial purchasers of the Convertible Senior Notes will have the option to purchase up to an additional $50 million of Convertible Senior Notes to cover over-allotments.  The Convertible Senior Notes will be convertible at the option of the holders into Lennar's Class A common stock at any time prior to maturity or redemption at the initial conversion rate of 42.5555 shares of Lennar Class A common stock per $1,000 principal amount of Convertible Senior Notes, which is equivalent to an initial conversion price of approximately $23.50 per share of Lennar's Class A common stock, subject to anti-dilution adjustments.  The conversion price is 37.5% above the $17.09 per share last reported sale price of Lennar's Class A common stock on November 22, 2011.  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 November 15, 2016.  Lennar will have the right to redeem the Convertible Senior Notes at any time on or after November 20, 2016 for 100% of their principal amount, plus accrued but unpaid interest.The Convertible Senior Notes will mature on November 15, 2021, 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, acquisitions of land suitable for residential development, and purchases of or investments in, portfolios of distressed mortgages or other debt instruments and foreclosed real estate.  None of the Convertible Senior Notes, any guarantees of the Convertible Senior Notes, or the shares of Lennar Class A common stock that will be issuable on conversion of the Convertible Senior Notes have been registered under the Securities Act of 1933, as amended. Neither the Convertible Senior Notes (including the guarantees) nor shares of Class A common stock that are issued on conversion of Convertible Senior Notes may 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, as amended.         SOURCE Lennar CorporationFor further information: Diane Bessette, Vice President and Treasurer, Lennar Corporation, +1-305-229-6419