Lennar Completes Sale Of Convertible Subordinated Notes

Apr 04, 2001, 01:00 ET from Lennar Corporation

    MIAMI, April 4 /PRNewswire/ -- Lennar Corporation (NYSE:   LEN) announced
 that it has finalized the sale of $200 million of Zero Coupon Senior
 Subordinated Convertible Notes due 2021.  If held to maturity, these notes
 would have an accreted value of $550 million.
     Each $1,000 principal amount at maturity will be convertible into 6.38
 common shares only if the closing prices of Lennar's common stock on the New
 York Stock Exchange exceed specified levels.  This is the equivalent of $56.93
 per share based on the March 29, 2001 closing price of Lennar's common stock
 of  $43.13 per share.
     The Notes are priced to yield 5.125% to maturity.  Lennar will use the
 proceeds to reduce its revolving credit facility and for general corporate
 purposes.  Holders will have the option to require Lennar to purchase their
 Notes on any of the fifth, tenth or fifteenth anniversaries of the issue date
 for the initial issue price plus accrued yield to the purchase date.  The
 offering is underwritten by Salomon Smith Barney.
     Stuart Miller, Lennar's President and Chief Executive Officer said: "The
 sale of these notes represents another step in our well established program of
 raising additional capital on advantageous terms in advance of any need for
 funds.  This financial strategy continues to balance our company's focus on
 improving operating margin efficiencies, improving return on capital while at
 the same time improving liquidity.  As a result, we are well positioned to
 take advantage of any expansion opportunities which may present themselves to
 the company."
     Lennar Corporation, founded in 1954, is headquartered in Miami, Florida.
 The Company has homebuilding operations in 13 states and is one of the
 nation's leading builders of quality homes for all generations, building
 affordable, move-up and retirement homes.  Under the Lennar Family of Builders
 banner, the Company includes the following brand names:  Lennar Homes, U.S.
 Home, Greystone, Village Builders, Renaissance, Orrin Thompson, Lundgren
 Bros., Winncrest and Rutenberg Homes.  The Company's active adult and retiree
 communities are primarily marketed under the Heritage and Greenbriar brand
 names.  Lennar's Financial Services Division provides residential mortgage
 services, title and closing services, and its Strategic Technologies Division
 provides high speed Internet access, cable television and home monitoring
 services for both Lennar homebuyers and other customers.
 
     Certain statements contained in this press release may be "forward-looking
 statements" as defined in the Private Securities Litigation Reform Act of
 1995.  By their nature, forward-looking statements involve risks,
 uncertainties and other factors that may cause actual results to differ
 materially from those which are anticipated.  With regard to the Company,
 these factors include, but are not limited to, changes in general economic
 conditions, the market for homes generally and in areas where the Company has
 developments, the availability and cost of land suitable for residential
 development, materials prices, labor costs, interest rates, consumer
 confidence, competition, environmental factors and government regulations
 affecting the Company's operations.  See the Company's Annual Report on Form
 10-K for the year ended November 30, 2000 for a further discussion of these
 and other risks and uncertainties applicable to the Company's business.
     Previous press releases may be obtained at www.lennar.com or by fax by
 calling 1-800-758-5804 and entering extension number 507038.
 
 

SOURCE Lennar Corporation
    MIAMI, April 4 /PRNewswire/ -- Lennar Corporation (NYSE:   LEN) announced
 that it has finalized the sale of $200 million of Zero Coupon Senior
 Subordinated Convertible Notes due 2021.  If held to maturity, these notes
 would have an accreted value of $550 million.
     Each $1,000 principal amount at maturity will be convertible into 6.38
 common shares only if the closing prices of Lennar's common stock on the New
 York Stock Exchange exceed specified levels.  This is the equivalent of $56.93
 per share based on the March 29, 2001 closing price of Lennar's common stock
 of  $43.13 per share.
     The Notes are priced to yield 5.125% to maturity.  Lennar will use the
 proceeds to reduce its revolving credit facility and for general corporate
 purposes.  Holders will have the option to require Lennar to purchase their
 Notes on any of the fifth, tenth or fifteenth anniversaries of the issue date
 for the initial issue price plus accrued yield to the purchase date.  The
 offering is underwritten by Salomon Smith Barney.
     Stuart Miller, Lennar's President and Chief Executive Officer said: "The
 sale of these notes represents another step in our well established program of
 raising additional capital on advantageous terms in advance of any need for
 funds.  This financial strategy continues to balance our company's focus on
 improving operating margin efficiencies, improving return on capital while at
 the same time improving liquidity.  As a result, we are well positioned to
 take advantage of any expansion opportunities which may present themselves to
 the company."
     Lennar Corporation, founded in 1954, is headquartered in Miami, Florida.
 The Company has homebuilding operations in 13 states and is one of the
 nation's leading builders of quality homes for all generations, building
 affordable, move-up and retirement homes.  Under the Lennar Family of Builders
 banner, the Company includes the following brand names:  Lennar Homes, U.S.
 Home, Greystone, Village Builders, Renaissance, Orrin Thompson, Lundgren
 Bros., Winncrest and Rutenberg Homes.  The Company's active adult and retiree
 communities are primarily marketed under the Heritage and Greenbriar brand
 names.  Lennar's Financial Services Division provides residential mortgage
 services, title and closing services, and its Strategic Technologies Division
 provides high speed Internet access, cable television and home monitoring
 services for both Lennar homebuyers and other customers.
 
     Certain statements contained in this press release may be "forward-looking
 statements" as defined in the Private Securities Litigation Reform Act of
 1995.  By their nature, forward-looking statements involve risks,
 uncertainties and other factors that may cause actual results to differ
 materially from those which are anticipated.  With regard to the Company,
 these factors include, but are not limited to, changes in general economic
 conditions, the market for homes generally and in areas where the Company has
 developments, the availability and cost of land suitable for residential
 development, materials prices, labor costs, interest rates, consumer
 confidence, competition, environmental factors and government regulations
 affecting the Company's operations.  See the Company's Annual Report on Form
 10-K for the year ended November 30, 2000 for a further discussion of these
 and other risks and uncertainties applicable to the Company's business.
     Previous press releases may be obtained at www.lennar.com or by fax by
 calling 1-800-758-5804 and entering extension number 507038.
 
 SOURCE  Lennar Corporation