First American Financial Corporation (NYSE: FAF), a leading
provider of title insurance, settlement services and risk solutions for
real estate transactions, today announced the pricing of a public
offering of $300.0 million of its 4.6 percent senior notes due 2024.
The offering is expected to close on Nov. 10, 2014, subject to customary
conditions, and is being made pursuant to the company’s shelf
registration statement filed with the Securities and Exchange Commission.
The notes will be general senior unsecured obligations of the company
and will rank equally in right of payment with the company’s existing
and future senior unsecured indebtedness.
The notes were priced at 99.975 percent to yield 4.603 percent. Interest
will be paid semi-annually on May 15 and November 15, beginning May 15,
2015. The company intends to use the net proceeds from the sale of the
notes for general corporate purposes. In addition, in anticipation of
receipt of the net proceeds from the offering of the notes, the company
recently repaid all borrowings outstanding under its revolving credit
facility.
J.P. Morgan Securities LLC; Goldman, Sachs & Co.; U.S. Bancorp
Investments, Inc.; and Wells Fargo Securities, LLC, are acting as the
joint book-running managers for the offering. Copies of the prospectus
supplement and accompanying base prospectus for the offering may be
obtained by contacting J.P. Morgan Securities LLC, 383 Madison Avenue,
New York, NY 10179, telephone (212) 834-4533, Attention: High Grade
Syndicate Desk; or by contacting Goldman, Sachs & Co., 200 West Street,
New York, NY 10282, telephone (201) 793-5170, Attention: Prospectus
Department; or by contacting U.S. Bancorp Investments, Inc., 214 N.
Tryon Street, 26th Floor, Charlotte, NC 28202, telephone (877) 558-2607,
Attention: Credit Fixed Income. An electronic copy of the prospectus
supplement and accompanying base prospectus for the offering may also be
obtained at www.sec.gov.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy securities, nor shall there be any sale
of any of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction. The
securities being offered have not been approved or disapproved by any
regulatory authority, nor has any such authority passed upon the
accuracy or adequacy of the prospectus supplement or the shelf
registration statement or prospectus.
About First American
First American Financial Corporation (NYSE: FAF) is a leading
provider of title insurance, settlement services and risk solutions for
real estate transactions that traces its heritage back to 1889. First
American also provides title plant management services; title and other
real property records and images; valuation products and services; home
warranty products; property and casualty insurance; and banking, trust
and investment advisory services. The company offers its products and
services directly and through its agents throughout the United States
and abroad.
Forward-Looking Statements
Certain statements made in this press release, including the closing
date of the offering, the net proceeds to be generated thereby and the
use of such proceeds, are forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. Risks and
uncertainties exist that may cause results to differ materially from
those set forth in these forward-looking statements. Factors that could
cause the anticipated results to differ from those described in the
forward-looking statements include: interest rate fluctuations; changes
in the performance of the real estate markets; volatility in the capital
markets; unfavorable economic conditions; and other factors described in
the company’s quarterly report on Form 10-Q for the quarter ended
September 30, 2014, as filed with the Securities and Exchange
Commission. The forward-looking statements speak only as of the date
they are made. The company does not undertake to update forward-looking
statements to reflect circumstances or events that occur after the date
the forward-looking statements are made.
Copyright Business Wire 2014