Beazer Homes USA is replacing its revolving line of credit and has retained BANK ONE as its lead bank. The $200 million revolver replaces a $250 million line of credit that is set to expire in November 2002, a BANK ONE banker said, declining to be named. Beazer Homes reduced the size of the line because it does not need the full capacity after completing a $200 million senior notes offering in May, he added. The lender is seeking eight to 12 banks to round out the syndicate and held a meeting at Beazer's headquarters in Atlanta last Wednesday. Beazer will use the line for general corporate purposes. David Weiss, cfo, at Beazer, was attending an outside meeting with other finance officials at the company and could not be reached. BANK ONE is committing $30 million and will be acting as administrative agent and sole lead arranger. The bank has not yet received additional commitments nor has it set commitment fees. The best efforts deal is expected to close in September, the banker noted. The three-year, unsecured revolver is priced at LIBOR plus 13/4%. Pricing on the previous unsecured line was slightly lower, at LIBOR plus 155. "This is primarily due to higher market pricing relative to last time they re-did the revolver," the banker explained.
Beazer Homes Obtains Revolver, Taps BANK ONE