The New Home Co. Inc.'s Proposed $35 Million Senior Unsecured Notes Due 2025 Rated 'B-' (Recovery Rating: '3')

CENTENNIAL (S&P Global Ratings) Feb. 22, 2021--S&P Global Ratings today assigned its 'B-' issue-level rating and '3' recovery rating to The New Home Co. Inc.'s proposed $35 million senior unsecured notes due 2025. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 60%) recovery in the event of a payment default. The terms of these tack-on notes are identical to the terms of its existing 7.25% senior notes, which it issued on Oct. 13, 2021, other than the issuance date and price. We expect the company to use the proceeds from this offering for general corporate purposes, including to fund its land acquisitions, investments in new markets, and working capital. For a more detailed view of our

...- General Criteria: Group Rating Methodology, July 1, 2019 - Criteria | Corporates | General: Corporate Methodology: Ratios And Adjustments, April 1, 2019 - Criteria | Corporates | General: Recovery Rating Criteria For Speculative-Grade Corporate Issuers, Dec. 7, 2016 - Criteria | Corporates | General: Methodology And Assumptions: Liquidity Descriptors For Global Corporate Issuers, Dec. 16, 2014 - Criteria | Corporates | Industrials: Key Credit Factors For The Homebuilder And Real Estate Developer Industry, Feb. 3, 2014 - General Criteria: Methodology: Industry Risk, Nov. 19, 2013 - General Criteria: Country Risk Assessment Methodology And Assumptions, Nov. 19, 2013 - Criteria | Corporates | General: Corporate Methodology, Nov. 19, 2013 - General Criteria: Methodology: Management And Governance Credit Factors For Corporate Entities, Nov. 13, 2012 - General Criteria: Principles Of Credit Ratings, Feb. 16, 2011...

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