Edinburgh-based house builder Miller Homes has hired investment banks for a $1.04 billion high-yield debt sale, Reuters reported.

The deal would be the first high yield bond sale in European markets in 10 weeks.

No bonds have been issued in the European high yield market since February 16, according to Refinitiv IFR data amid a surge in borrowing costs.

Reuters reported that Miller Homes will raise $1.04 billion from a seven-year sterling-denominated senior secured bond callable after three years, and a euro-denominated six-year senior secured floating-rated bond callable after one year.

Proceeds will refinance an acquisition bridge facility.

Miller Homes was bought from private equity firm Bridgepoint Group plc in December by funds managed by affiliates of New York-based investment firm Apollo and the existing Miller Homes management.

Financial terms were not disclosed, but the price was understood to be over £1.2 billion.

Bridgepoint bought Miller Homes in August 2017 in a transaction totalling £655 million from funds managed by GSO Capital Partners, a division of Blackstone.

Miller Homes builds 4,000 homes a year across the UK and has ambitions to grow to 6,000 units annually in the medium-term.