Century Communities prices $500 million senior notes offering

Published 04/09/2025, 00:10
Century Communities prices $500 million senior notes offering

GREENWOOD VILLAGE, Colo. - Century Communities, Inc. (NYSE:CCS), a homebuilder with a market capitalization of $1.91 billion and currently trading at $65.21, announced Wednesday it has priced a $500 million private offering of 6.625% Senior Notes due 2033, according to a press release statement. InvestingPro analysis suggests the stock is slightly undervalued at current levels.

The notes will be sold to investors at 100% of the principal amount and will be guaranteed on an unsecured senior basis by certain of the company’s current and future subsidiaries, including substantially all of its domestic wholly-owned subsidiaries. The company maintains a healthy financial position with a current ratio of 5.37, indicating strong ability to meet short-term obligations.

The offering is expected to close on September 17, 2025, subject to customary closing conditions. Century Communities anticipates net proceeds of approximately $494 million after payment of initial purchasers’ discounts and other estimated fees and expenses.

The homebuilder plans to use the net proceeds, plus cash on hand, to finance the redemption of all $500 million aggregate principal amount of its 6.750% Senior Notes due 2027. With a P/E ratio of 7.76, the company trades at an attractive earnings multiple. For deeper insights into Century Communities’ financial health and growth potential, InvestingPro subscribers have access to over 30 additional financial metrics and expert analysis.

The notes will be sold only to qualified institutional buyers under Rule 144A of the Securities Act and to certain non-U.S. persons in transactions outside the United States pursuant to Regulation S.

Century Communities operates in 16 states and over 45 markets across the United States through its Century Communities and Century Complete brands. The company is engaged in all aspects of homebuilding, including land acquisition, development, construction, marketing and sales.

In other recent news, Century Communities reported strong financial results for the second quarter of 2025, surpassing earnings expectations. The company posted an adjusted earnings per share (EPS) of $1.37, which exceeded the forecast of $1.12 by 22.32%. Additionally, revenue reached $1 billion, surpassing projections of $919.8 million by 8.72%. Century Communities announced a private offering of $500 million in senior notes due 2033, intending to use the proceeds to redeem all $500 million of its outstanding 6.750% Senior Notes due 2027. In another development, S&P Global Ratings revised its outlook on Century Communities to negative from stable, while maintaining all other ratings. The rating agency anticipates a reduction in the company’s adjusted year-end debt balance as home closings and cash flow are expected to improve later in the year. Furthermore, Century Communities declared a quarterly cash dividend of $0.29 per share, payable on September 10, 2025, to stockholders of record as of August 27, 2025.

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