Taylor Morrison Home Corp. reported that its cash tender offer for the company’s $500 million, 5.875 % senior notes due 2027, which began on November 3, 2025, expired on November 7, 2025. 95.83 % of the principal—$479,155,000—was tendered, and the company will pay a purchase price of $1,023.07 for every $1,000 of principal. All accepted tenders will be paid on November 10, 2025.
The company will use proceeds from a newly issued $525 million senior note due 2032, carrying a 5.750 % coupon, to fund the purchase of the tendered notes. In addition, Taylor Morrison has issued a conditional notice of redemption to redeem any remaining 2027 notes on or around December 2, 2025, at a make‑whole price. The plan is to retire all outstanding 2027 debt that was not purchased, thereby extending the company’s debt maturity profile and reducing long‑term debt exposure.
By replacing higher‑coupon 2027 debt with lower‑coupon 2032 debt, the company is expected to lower its interest expense and improve liquidity. The refinancing also frees capital that can be directed toward growth initiatives such as land acquisition and home construction, supporting the company’s broader strategy to strengthen its balance sheet and allocate capital efficiently.
The tender rate of 95.83 % indicates strong investor confidence in the company’s debt management and financial health. A high redemption rate reduces the risk of near‑term refinancing and signals that the market views the company’s extended maturity and lower cost of capital favorably.
Taylor Morrison’s Q3 2025 earnings release highlighted that the company’s net income rose to $251 million from $171 million in Q3 2023, underscoring the company’s ability to generate cash that can support debt refinancing. The company also integrated the debt of its recently acquired William Lyon Homes, Inc., further consolidating its capital structure.
CEO Sheryl Palmer noted that the company is pleased to report strong third‑quarter results “despite the continuation of challenging market conditions.” The refinancing aligns with that outlook, demonstrating proactive debt management in a cyclical industry and reinforcing the company’s commitment to maintaining financial flexibility.
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