The 1.75% convertible senior notes are due 2028

Davis Polk advised the representatives of the initial purchasers in connection with a Rule 144A offering by Meritage Homes Corporation of $575 million aggregate principal amount of its 1.75% convertible senior notes due 2028, which includes the full exercise of the initial purchasers’ option to purchase additional notes. The notes are fully and unconditionally guaranteed by certain subsidiaries of Meritage Homes. In addition, Davis Polk advised the counterparties to capped call transactions entered into in connection with the offering.

Meritage Homes is the fifth-largest public homebuilder in the United States, based on homes closed in 2023, and offers energy-efficient and affordable entry-level and first move-up homes. Its operations span Arizona, California, Colorado, Utah, Texas, Florida, Georgia, North Carolina, South Carolina and Tennessee.

The Davis Polk corporate team included partner Michael Kaplan and associate Christian Knoble. The equity derivatives team included partner Caitlin L. Wood, counsel Joseph Luizzi and associates Stockton Bullitt, Ji Hwan Kim and Melissa X. Estrada. The tax team included counsel Yixuan Long and associate Ted Lee. Counsel Charles Shi provided ERISA advice. All members of the Davis Polk team are based in the New York office.