News

10.04.10

PulteGroup Announces Early Tender Results of Its Cash Tender Offers for up to $500 Million Aggregate Principal Amount of Outstanding Notes and Early Acceptance of Certain Notes Tendered in Its Any and All Offer

Note Tender Part of Comprehensive Capital Allocation Strategy

BLOOMFIELD HILLS, Mich., Sep 22, 2010 (BUSINESS WIRE) --

PulteGroup, Inc. (NYSE: PHM) ("PulteGroup," the "Company" or "us") today announced the commencement of tender offers to purchase for cash up to $500 million aggregate principal amount of currently outstanding notes. The tender offers will be funded from the Company's available cash balance which was $2.7 billion as of the second quarter ended June 30, 2010.

"Assuming the maximum principal amount of notes are tendered, PulteGroup can reduce its annual pretax interest expense by approximately $25 - $30 million," said Roger A. Cregg, Executive Vice President and Chief Financial Officer. "Along with the $500 million in notes targeted by this tender, PulteGroup has over $500 million in additional bonds that will mature over the next 24 months. With no debt offerings currently anticipated, these expected pay downs will reduce outstanding debt by more than $1.0 billion.

"This tender is part of PulteGroup's overall capital allocation strategy which seeks to balance the need for routine investment into the business, with additional debt pay down and/or future dividends and stock repurchases. Given the Company's strong cash balance, beyond these immediate plans for debt reduction, we will initiate a minimum $50 million per year stock repurchase program under our existing authorization which has $102 million remaining." The share repurchases may be implemented using a variety of methods, and timing will be dependent on prevailing market conditions, alternative uses of capital and other factors.

"While volatile, demand in the U.S. housing market appears to be moving along a bottom," added Mr. Cregg. "We remain conservative in our near-term expectations for the business and see our expected capital allocations as being supportive of this position."

Details of the Cash Tender Offers

Pursuant to the cash tender offers, PulteGroup has offered to purchase up to $500 million aggregate principal amount (the "Tender Cap") of three series of notes issued by PulteGroup and three series of notes issued by Centex Corporation, a wholly-owned subsidiary of PulteGroup ("Centex") listed in the table below (collectively, the "Notes"). The offers to purchase consist of three separate offers, with the first offer to purchase any and all of the outstanding Notes listed under the heading "Any and All Offer" in the table below (the "Any and All Offer"). The second offer is to purchase Notes listed under the heading "Maximum Tender Offer" in the table below (the "Maximum Tender Offer") in an aggregate principal amount equal to the amount of the Tender Cap remaining for the purchase of such Notes following the purchase of the Notes in the Any and All Offer, as set forth in the table below. The third offer is to purchase Notes listed under the heading "Dutch Auction Tender Offer" in the table below (the "Dutch Auction Tender Offer" and together with the Maximum Tender Offer and the Any and All Offer, the "Offers") in an aggregate principal amount equal to the amount of the Tender Cap remaining for the purchase of such Notes following the purchase of the Notes in the Any and All Offer and the Maximum Tender Offer, as set forth in the table below.

Early
Principal Acceptance Total Tender Tender
Amount Priority Consideration or Bid Payment Offer

Title of Securities and CUSIP Numbers

Issuer

Outstanding

Level

Price Range (1)(3)

(1)(2)

Consideration (1)

Offer for Notes listed below: Any and All Offer

6.250% Notes due 2013 (CUSIP: 745867AN1)

PulteGroup*

$225,215,000

 N/A

$1,060.00 $30.00 $1,030.00

5.125% Notes due 2013 (CUSIP: 152312AM6)

Centex

$269,916,000

 N/A

$1,047.50 $30.00 $1,017.50
Offer for Notes listed below: Maximum Tender Offer

5.250% Notes due 2014 (CUSIP: 745867AQ4)

PulteGroup* $463,996,000  1 $1,025.00 $30.00 $995.00

5.700% Notes due 2014 (CUSIP: 152312AN4)

Centex $350,000,000  1 $1,047.50 $30.00 $1,017.50

Offer for Notes listed below: Dutch Auction Tender Offer

5.200% Notes due 2015 (CUSIP: 745867AS0)

PulteGroup* $292,865,000  2 $965.00-$995.00 $30.00 $935.00-$965.00

5.250% Notes due 2015 (CUSIP: 152312AQ7)

Centex $450,000,000  2 $995.00-$1,025.00 $30.00 $965.00-$995.00
* At the time of issue of these Notes, the Company was known as Pulte Homes, Inc.
(1) Per $1,000 principal amount of Notes tendered and accepted for purchase.
(2) Included in the Total Consideration for Notes tendered at or prior to 5:00 p.m., New York City time, on the Early Tender Date.
(3) Bid price specified by holders of Notes will include the Early Tender Payment of $30.00.

The total consideration for each $1,000 principal amount of Notes validly tendered and not validly withdrawn in the Any and All Offer and the Maximum Tender Offer payable to holders of Notes who have validly tendered and not validly withdrawn their Notes at or prior to 5:00 p.m., New York City time, on October 5, 2010 (the "Early Tender Date"), and whose Notes are accepted for purchase is specified in the table above under the heading "Total Consideration or Bid Price Range" (the "Total Consideration"). The Total Consideration or bid price range for the Notes in the Offers includes an early tender

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