MRP News & Events

Millrose Properties files automatic mixed securities shelf

Millrose Properties announced the closing of an amendment to its credit facility with JPMorgan Chase Bank, N.A. serving as administrative agent, adding a new $500M term loan to expand floating rate unsecured debt capacity under the facility to $1.835B. The amended unsecured facility, replacing the previously secured revolving credit facility, combines the new Term Loan with a $1.335B unsecured revolving credit commitment, providing the Company with increased liquidity and financial flexibility to serve homebuilding partners across the country. Borrowings under the agreement bear interest at a variable rate based on Adjusted Term SOFR plus a margin ranging from 2.00% to 2.50%, depending on the Company's leverage ratio. The facility matures on March 25, 2030. Proceeds from the credit agreement will be used for general corporate purposes, including refinancing existing indebtedness. In connection with the new agreement, liens under the Company's prior secured credit facility were released.

In an industry initiation note on the homebuilding and real estate services sector, BTIG analyst Ryan Gilbert initiated coverage of Millrose Properties (MRP), which was recently spun off from Lennar (LEN), with a Buy rating and $35 price target. BTIG believes Millrose Properties can offer builders a "compelling rate both due to its cost of capital advantages and services via its technology platform," and feels the stock is "cheap relative to the opportunity."

Millrose Properties (MRP) issued the following statement in connection with the completion of Lennar (LEN) previously disclosed offer to exchange shares of Millrose Class A common stock for shares of Lennar Class A common stock. "The completion of this exchange represents an important milestone in Millrose's evolution as an independent public company, further diversifying our shareholder base and increasing liquidity in our stock," said Darren Richman, CEO and president of Millrose. "The significant oversubscription demonstrates strong market confidence in our permanent capital solution for homebuilders and our growth trajectory. Lennar remains our founding and cornerstone partner, providing consistent demand for finished homesite inventory as we continue expanding our platform to serve a diversified network of top-tier homebuilders."