...March 25, 2024 HARRISBURG (S&P Global Ratings) March 25, 2024--S&P Global Ratings today assigned its 'B-' issue-level rating and '3' recovery rating to The New Home Co. Inc.'s proposed $325 million unsecured senior notes due in 2029. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a default. We expect the company will use the net proceeds to refinance the 8.25% senior unsecured notes due in 2027, pay down balances on its $180 million revolving credit facility due in 2027, cover fees and expenses, and for general corporate purposes. Approximately $30 million-$40 million cash on the balance sheet will further strengthen its liquidity profile and allow the company to continue to invest in the business. Our 'B-' issuer credit rating and stable outlook on New Home are unchanged. We view the refinancing positively, as it enhances the company's financial flexibility as it continues to execute its growth trajectory. For...
