Millrose Properties, Inc. completed the sale of $1.0 billion in aggregate principal amount of senior notes on October 6, 2026. The offering consisted of two separate tranches: $500.0 million of 6.500% senior notes due 2029 and $500.0 million of 6.750% senior notes due 2031.
The notes were issued to qualified institutional buyers and certain non-U.S. persons under Rule 144A and Regulation S, respectively, and were not registered under the Securities Act. Citibank, N.A. serves as trustee for both note indentures.
Interest on the 2029 Notes is set at 6.500% per annum, while the 2031 Notes bear interest at 6.750% per annum. Interest payments are scheduled for April 15 and October 15 of each year, beginning April 15, 2027.
The notes are fully and unconditionally guaranteed on a senior unsecured basis by Millrose Properties SPE LLC and MPSAB, LLC. The obligations are pari passu with the company’s existing senior indebtedness, including its amended and restated credit agreement and outstanding 6.375% Senior Notes due 2030 and 6.250% Senior Notes due 2032.
The indentures include provisions allowing the company to redeem some or all of the notes prior to maturity. The company may redeem up to 40% of the 2029 Notes with cash proceeds from equity offerings at a price of 106.500% of the principal amount, and up to 40% of the 2031 Notes at 106.750% under similar conditions.
Additionally, the 2031 Notes include a special mandatory redemption provision. If the previously announced merger between Dream Finders Homes, Inc. and Beazer Homes, Inc. is not completed by May 13, 2027, the company is required to redeem all outstanding 2031 Notes at 100% of their principal amount plus accrued interest.
