Mattamy Homes Secures $825M in Strategic Debt Overhaul

TORONTO, ON – December 17, 2025 – Mattamy Group Corporation, North America's largest family-owned homebuilder, announced today the successful completion of a significant financial maneuver, raising a combined US$475 million and CAD$350 million through an offering of senior unsecured notes. The move is a clear strategic play to refinance existing debt and fortify the company's financial position as it navigates the complex crosscurrents of the current housing market.

According to the company's official press release, the net proceeds from this substantial offering are earmarked for a comprehensive balance sheet cleanup. The funds will be used to redeem in full its outstanding US$500 million of 5.250% senior notes due in 2027 and its CAD$250 million of 4.625% senior notes set to mature in 2028. Additionally, the capital will be used to pay down borrowings on its revolving credit facilities and cover associated fees. This refinancing allows Mattamy to restructure its liabilities, a proactive step that can enhance financial flexibility and stability for the years ahead.

A Strategic Financial Reshuffle

This debt overhaul is more than just a routine transaction; it is a signal of sophisticated financial management from a private giant. By replacing older notes, Mattamy is likely optimizing its debt profile, a critical strategy in a fluctuating interest rate environment. While the terms of the new notes were not disclosed, such moves are typically aimed at securing more favorable interest rates, extending maturity dates, or both, thereby reducing future interest expenses and freeing up cash flow for operations and investment.

The timing of the move follows a period of demonstrated financial strength for the homebuilder. In late 2023, S&P Global Ratings upgraded Mattamy Group Corp. to 'BB+' from 'BB', assigning a stable outlook. At the time, the rating agency highlighted the company's consistent operating momentum, forecasting strong metrics such as a debt-to-EBITDA ratio below 2x and robust EBITDA interest coverage between 10x and 11x. This successful note offering underscores the market's continued confidence in Mattamy's creditworthiness and disciplined financial strategy, allowing it to tap public debt markets on a scale that rivals many publicly traded corporations.

Navigating a Divided Housing Market

Mattamy's financial restructuring comes at a pivotal moment for the North American housing industry, which faces a landscape of persistent challenges and emerging opportunities.

In the United States, the market remains tentative. The NAHB/Wells Fargo Housing Market Index, a key measure of builder confidence, lingered at 39 in December 2025, marking the 20th consecutive month below the break-even point of 50. Although the Federal Reserve has initiated rate cuts, bringing borrowing costs to their lowest since 2022, the average 30-year fixed mortgage rate remains elevated, continuing to strain housing affordability. Consequently, builders are increasingly relying on price cuts and sales incentives to attract buyers. Housing inventory is slowly rising but remains insufficient to meet underlying demand, creating a complex environment for builders to manage.

Across the border in Canada, the market is also experiencing a cooling period. The Canada Mortgage and Housing Corporation (CMHC) has forecast a continued moderation of the housing market through 2025, with home prices expected to dip slightly. The Bank of Canada has held its policy rate steady, but affordability remains a significant barrier, particularly in major urban centers. Projections indicate a decline in housing starts for 2025, adding another layer of complexity for developers. Mattamy's refinancing positions it with a fortified balance sheet to weather this slowdown and maintain its long-term development pipeline.

Fueling Growth Despite Headwinds

Far from signaling a retreat, Mattamy's capital raise appears designed to fuel its ongoing growth and expansion strategy. The company has remained remarkably active, continuing to invest in land and launch new communities across its key markets. This financial flexibility is crucial for executing its ambitious plans without being constrained by near-term market volatility or maturing debt obligations.

In recent months, the company has deepened its commitment in high-demand submarkets. In North Carolina, it secured dual land acquisitions in Mooresville and Cramerton near Charlotte. In Arizona, it expanded its footprint with 115 new homesites in San Tan Valley and acquired 22 acres in Tucson for a new community slated to launch in 2026. The company also announced new projects in Texas and celebrated the grand opening of its Crosswind Ranch community in Parrish, Florida.

In Canada, the builder recently broke ground on The Laurels, a new master-planned community in Milton, Ontario, one of the country's fastest-growing areas. These investments demonstrate a clear, forward-looking strategy focused on acquiring and developing land in growth corridors. This approach is consistent with Mattamy's history, which includes long-term, large-scale projects like the sprawling Wellen Park community in Sarasota County, Florida.

A Private Giant's Public Market Play

As a private, family-owned entity, Mattamy's ability to successfully raise over US$800 million in aggregate from the public debt markets is a significant competitive advantage. While many smaller and even mid-sized builders grapple with tightening credit conditions from traditional banks for acquisition, development, and construction (AD&C) loans, Mattamy has demonstrated its ability to access diverse and deep pools of capital.

Industry surveys indicate that for 14 consecutive quarters, banks have been retrenching from construction lending, reducing loan amounts, demanding personal guarantees, and increasing interest rates. This credit squeeze has pushed many developers toward more expensive private credit options. Mattamy’s successful bond offering allows it to bypass these constraints, securing the large-scale, long-term capital necessary to execute its vision. This financial independence enables the company to maintain its development velocity and strategic land acquisitions, positioning it to capture market share and continue its legacy of helping more than 8,000 families a year achieve homeownership across the continent.