The Company also granted the initial purchasers of the notes a 13-day option to purchase up to $75 million of aggregate principal amount of additional notes. The sale of the notes is expected to settle on May 9, 2024, subject to customary closing conditions, and is expected to result in approximately $484.8 million (or approximately $557.8 million if the initial purchasers exercise their option to purchase additional notes in full) in net proceeds to Meritage after deducting the initial purchasers' discounts and commissions and estimated offering expenses payable by Meritage. The Company intends to use the net proceeds received from the offering to pay the cost of entering into the capped call transactions, as described below, to redeem all of its outstanding 6.00% Senior Notes due 2025 and the remainder for general corporate purposes.