Bloomberg News

Taylor Morrison Files to Raise as Much as $523.8 Million

April 01, 2013

Taylor Morrison Home Corp. (TMHC:US), a builder of houses in the U.S. and Canada, filed to raise as much as $523.8 million in an initial public offering.

About 23.8 million shares are being offered at $20 to $22 each, according to a regulatory filing today from the Scottsdale, Arizona-based company. Taylor Morrison plans to trade on the New York Stock Exchange under the ticker TMHC.

The builder is seeking to benefit from a recovery in home sales and prices, which have climbed following the worst housing crash since the Great Depression. Taylor Morrison’s owners, which include TPG Capital and Oaktree Capital Management LP, are taking advantage of rising demand for new equities as record- high U.S. stocks help fuel a pickup in the IPO market.

“We believe that a U.S. housing recovery is under way on a national basis, driven by consumers who are increasingly optimistic about their economic prospects,” the company said in the prospectus filed today.

Taylor Morrison builds homes in Arizona, California, Colorado, Texas, Florida and Ontario, Canada. It was sold in 2011 by its British parent, Taylor Wimpey Plc (TW/), to a group of investors backed by David Bonderman’s TPG, Los Angeles-based Oaktree and JH Investments Inc.

Following the IPO, TPG and Oaktree will each hold 39.5 percent of the shares, while investors in the offering will hold 19.5 percent, according to the prospectus. The $21 midpoint values Taylor Morrison’s outstanding common stock at $2.57 billion, the regulatory filing shows.

Share Purchases

Taylor Morrison is selling all of the stock in the offering and will use proceeds to repay borrowings and purchase shares from TPG and Oaktree, the filing shows.

Taylor Morrison had net income of $430.8 million on revenue of $1.4 billion in 2012, ranking among the 10 largest publicly traded U.S. homebuilders, according to the prospectus. It sold 4,014 homes with an average price of $364,000.

Following the IPO, Taylor Morrison intends to sell $500 million of debt, subject to market conditions, for working capital and general purposes.

Credit Suisse Group AG (CSGN) and Citigroup Inc. (C:US) are leading the stock sale.

To contact the reporter on this story: John Gittelsohn in Los Angeles at johngitt@bloomberg.net

To contact the editor responsible for this story: Kara Wetzel at kwetzel@bloomberg.net


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Companies Mentioned

  • TMHC
    (Taylor Morrison Home Corp)
    • $19.1 USD
    • -0.24
    • -1.26%
  • C
    (Citigroup Inc)
    • $53.66 USD
    • 1.27
    • 2.37%
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