Taylor Morrison Home Corp. (TMHC) has initiated a cash tender offer for its $500 million outstanding 5.875% senior notes due 2027 and announced a new unsecured, senior‑guaranteed note offering of $525 million due 2032.
The tender offer, made by a wholly‑owned subsidiary, allows holders of the 2027 notes to tender their bonds for a price calculated from a fixed spread and the yield on a U.S. Treasury reference security. The offer expires on November 7, 2025.
The new 2032 offering will be sold to qualified institutional buyers under Rule 144A. Proceeds from the new notes will be used to purchase any 2027 notes tendered, redeem all 2027 exchange notes and William Lyon Homes 2027 notes, and cover related fees and expenses.
By refinancing the 2027 debt with longer‑term, lower‑cost financing, TMHC reduces its near‑term refinancing risk and improves balance‑sheet leverage. The move aligns with the company’s asset‑lighter land strategy, which focuses on land options and off‑balance‑sheet arrangements to free capital for development.
TMHC reported Q3 2025 earnings with an EPS of $2.11, surpassing analyst expectations of $1.92. The company’s debt profile as of September 30, 2025 included $500 million in 2027 notes, $25.44 million in 2027 exchange notes, and $1.63 million in 2027 William Lyon Homes notes.
Segment performance for the quarter showed growth in the East and Central regions, while the West segment maintained steady sales. The Financial Services segment continued to provide mortgage and title services, supporting the company’s integrated home‑building model.
Management highlighted that the refinancing supports ongoing build‑to‑rent initiatives and positions TMHC to capitalize on rising rental demand. The company also noted that current interest rates remain favorable for issuing longer‑term debt.
The redemption of William Lyon Homes 2027 notes reflects TMHC’s ongoing integration of assets acquired through past acquisitions, consolidating liabilities under its own balance sheet.
Overall, the transaction strengthens TMHC’s capital structure, reduces interest expense over the long term, and provides a stable financing base for future growth initiatives.
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