Due to mature in 2021, each $1,000 of the principal amount on these zero-coupon debentures may be converted into 6.38 common shares at a 32% premium based on the price of Lennar's publicly traded stock on the New York Stock Exchange as of the close of markets on March 29. Since the issue closed at $43.13, the debt holders may convert at a price of $56.93 on the fifth, 10th or 15th anniversary of the issue date plus the accrued yield.
The sale comes as recently released financials show that the mega-homebuilder closed the fiscal year ended Nov. 30, 2000, with $1.7 billion in total debt and a net homebuilding debt-to-capital ratio of 44%.
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