Millrose Properties prices $1 billion in senior notes for potential Dream Finders-Beazer deal
The notes, split evenly between 2029 and 2031 maturities, carry a redemption trigger if a homebuilder merger does not close by May 2027
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Table: Amount, Coupon, Price
Millrose Properties has priced a private offering of $1.0 billion in senior notes, split into $500 million of 6.500% notes due 2029 and $500 million of 6.750% notes due 2031. Both tranches priced at 100.000% of principal. The offering is expected to close on October 6, 2026.
The company plans to use the proceeds, along with $500 million drawn under its delayed draw term loan facility, for general corporate purposes. That includes the potential acquisition of homesites from the combined entity formed by Dream Finders Homes and Beazer Homes, as well as repaying borrowings under its revolving credit facility, which had $850 million outstanding as of September 21, 2026.
The notes carry a contingency: if the Dream Finders-Beazer merger does not close by May 13, 2027, Millrose will use part of the proceeds to redeem all of the 2031 notes.
The pricing locks in financing costs of 6.5% to 6.75% for a deal that has not yet closed. Those rates reflect current market conditions rather than any sign of distress, but the redemption clause tied to the merger deadline shows Millrose is building execution risk on the combination directly into its capital structure.