Nov. 22, 2011
(NYSE: LEN and LEN.B) announced that it has agreed to sell
principal amount of its 3.25% Convertible Senior Notes due 2021 to initial purchasers, who are selling the Convertible Senior Notes to qualified institutional buyers in transactions that are exempt from the registration requirements of the Securities Act of 1933, as amended, under SEC Rule 144A. The Convertible Senior Notes are expected to be delivered and paid for on
, 2011. The initial purchasers of the Convertible Senior Notes will have the option to purchase up to an additional
of Convertible Senior Notes to cover over-allotments.
The Convertible Senior Notes will be convertible at the option of the holders into Lennar's Class A common stock at any time prior to maturity or redemption at the initial conversion rate of 42.5555 shares of Lennar Class A common stock per
principal amount of Convertible Senior Notes, which is equivalent to an initial conversion price of approximately
per share of Lennar's Class A common stock, subject to anti-dilution adjustments. The conversion price is 37.5% above the
per share last reported sale price of Lennar's Class A common stock on
, 2011. Holders of the Convertible Senior Notes will have the right to require Lennar to repurchase them for cash equal to 100% of their principal amount, plus accrued but unpaid interest, on
, 2016. Lennar will have the right to redeem the Convertible Senior Notes at any time on or after
November 20, 2016
for 100% of their principal amount, plus accrued but unpaid interest.
The Convertible Senior Notes will mature on
November 15, 2021
, unless they are redeemed, repurchased or converted before that date.
Lennar plans to use the net proceeds from the sale of the Convertible Senior Notes for general corporate purposes, which may include the repayment or repurchase of its existing senior notes or other indebtedness, acquisitions of land suitable for residential development, and purchases of or investments in, portfolios of distressed mortgages or other debt instruments and foreclosed real estate.