Millrose plans $1 billion bond sale to fund homesite growth

Millrose Properties, Inc. plans to raise up to $1 billion through a two-part senior notes offering, positioning the land development platform to finance homesite acquisitions linked to the pending Dream Finders Homes and Beazer Homes merger and to pay down its revolving credit facility. The Miami-based company said Tuesday it intends to issue $500 million of senior notes due 2029 and $500 million of senior notes due 2031 in a private offering, subject to market conditions. The deal will be exempt from registration under the Securities Act of 1933 and will be marketed only to qualified institutional buyers under Rule 144A and certain non-U.S. investors under Regulation S, according to the company announcement. Millrose plans to pair the bond sale with a $500 million draw on its delayed draw term loan facility, giving the company up to $1.5 billion of incremental capital to deploy. The company said it will use the proceeds for general corporate purposes, including: Acquiring homesites from the combined Dream Finders Homes–Beazer Homes entity tied to their previously announced merger, referred to as the Dream Finders Transaction Repaying amounts outstanding under its revolving credit ...