The New Home Company (NYSE: NWHM) has announced a private offering of $250 million in 7.25% senior notes due 2025. The notes, priced at 100% of their face value, will yield a maturity of 7.25%. The closing date for this offering is set for October 28, 2020, pending customary conditions. The proceeds will be utilized to redeem the company's outstanding 7.25% senior unsecured notes due 2022 and cover related expenses. The offering targets qualified institutional buyers and non-U.S. persons under specific regulations.
The New Home Company plans to privately offer $250 million in senior notes due 2025 to redeem existing 7.25% senior unsecured notes due 2022. The proceeds will cover the redemption costs and related expenses. The offering targets qualified institutional buyers and non-U.S. persons under Rule 144A and Regulation S. This announcement does not constitute an offer for the securities and involves forward-looking statements, indicating potential risks affecting the company's operations.
The New Home Company (NWHM) announced preliminary results for Q3 2020, indicating significant growth in net new orders, which rose by 102% to 251 compared to 124 in Q3 2019. Monthly sales absorption increased by 75% to 3.5 homes per community. The backlog expanded by 59%, representing $207.1 million in value. However, home sales revenue slightly decreased to $117.4 million from $118.8 million year-over-year. The company reported a cash increase to $126.4 million, with total debt down to $290.3 million.
The New Home Company (NYSE: NWHM) will announce its financial results for Q3 2020 on November 2, 2020, before market opening. An investor conference call will follow at 8:00 AM PT to discuss results and answer questions. The call can be accessed via the company's website. New Home Company, based in Aliso Viejo, California, focuses on designing and building innovative homes in select markets in California and Arizona.