Ryland Group Inc. sold $250 million of debt in the third U.S. convertible note offering from a homebuilder this year.
Ryland, which builds homes in cities from Baltimore to Las Vegas, issued 0.25 percent convertible securities that can be swapped for shares at $75.01 each before June 2019, according to data compiled by Bloomberg. The stock closed yesterday at $50.01, its highest price since February 2007.
The offering will be used for general corporate purposes, including land and other acquisitions, according to a regulatory filing yesterday. Citigroup Inc., JPMorgan Chase & Co., Wells Fargo & Co. and Royal Bank of Scotland Plc managed the offering, the filing said.
The last homebuilder to sell convertible debt was Columbus, Ohio-based M/I Homes Inc., which in March offered $86.3 million of 3 percent, five-year notes that can be swapped for shares at $32.31 each, Bloomberg data show. KB Home sold $230 million of the securities in January.
Low mortgage rates, a strengthening job market and limited inventories are contributing to the recovery in the housing market. The National Association of Home Builders/Wells Fargo index of builder confidence rose to 44 from a revised 41 in April, the Washington-based group reported today.