Beazer to Offer 18m Shares, $50m in Convertible Debt
Beazer Homes (BZH) will issue new common stock and convertible subordinate debt, the Atlanta-based homebuilder said in a pair of Securities and Exchange Commission (SEC) filings. According to the filings, Beazer will issue 18m shares of common stock and $50m in convertible subordinate debt which will convert to stock shares in 2013. The proceeds from both offerings will be used to replenish funds used in connection with Beazer’s repayment of 8.625% senior notes due in 2011. As of January 4, Beazer had $127.3m in outstanding principal for the 2011 notes. Beazer also plans to use the funds for other general business expenses. Citi and Credit Suisse are serving as joint book runners for the transactions. The builder added it will grant the five underwriters 30 days to buy as much as 15% more shares and notes in case of over-allotments. Beazer said it plans to grant underwriters a 30-day option to buy up to 15 percent more shares and notes to cover over-allotments. For Q410, Beazer reported 728 new orders for homes, a 36.6% increase from Q408’s 533 new orders. Units closed totaled 961 in Q409, up 8% from 890 in Q408. Write to Austin Kilgore. The author held no relevant investments.