American Homes 4 Rent Announces Pricing of Public Offering of $500 Million of 5.500% Senior Notes due 2034
American Homes 4 Rent (NYSE: AMH) has announced the pricing of a $500 million public offering of 5.500% senior notes due 2034. The notes will be issued at 99.455% of par value with semi-annual interest payments starting January 15, 2025. Maturity is set for July 15, 2034. The offering is expected to close on June 26, 2024, subject to customary closing conditions.
The proceeds will be used to repay outstanding debts, including the 2014-SFR3 asset-backed securitization notes, and for general corporate purposes like property acquisitions and improvements. Leading financial institutions including BofA Securities and J.P. Morgan are managing this offering.
- Successful pricing of $500 million senior notes, indicating strong market demand.
- Interest rate of 5.500% is competitive.
- Proceeds will be used to repay outstanding debts, improving financial stability.
- Funds allocated for property acquisitions and improvements, potentially enhancing asset value.
- Issuing notes at 99.455% of par value, indicating a slight discount.
- Increased debt obligations with the issuance of new notes.
Insights
The Operating Partnership intends to use the net proceeds from the offering for the repayment of outstanding indebtedness, which may include the repayment or voluntary prepayment of all or a portion of the outstanding 2014-SFR3 asset-backed securitization notes, as well as general corporate purposes, including, without limitation, property acquisitions and developments, the expansion, redevelopment and/or improvement of existing properties in the Company's portfolio, other capital expenditures, working capital and other general purposes.
BofA Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC are acting as joint book-running managers and representatives of the underwriters for the offering, and PNC Capital Markets LLC, Raymond James & Associates, Inc., Citigroup Global Markets Inc., Mizuho Securities
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer or sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful before registration or qualification thereof under the securities laws of any such state or jurisdiction.
The offering is being made pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission (the "SEC") and only by means of a prospectus and prospectus supplement. Copies of the preliminary prospectus supplement relating to the offering and the final prospectus supplement, when available, may be obtained by visiting EDGAR on the SEC's website at www.sec.gov or from BofA Securities, Inc., 201 North Tryon Street, NC1-022-02-25,
About AMH
American Homes 4 Rent (NYSE: AMH) is a leading large-scale integrated owner, operator and developer of single-family rental homes. We're an internally managed
Forward-Looking Statements
This press release contains "forward-looking statements" that relate to beliefs, expectations or intentions and similar statements concerning matters that are not of historical fact and are generally accompanied by words such as "estimate," "project," "predict," "believe," "expect," "anticipate," "intend," "potential," "plan," "goal," "outlook," "guidance" or other words that convey the uncertainty of future events or outcomes. Examples of forward-looking statements contained in this press release include, among others, the Operating Partnership's ability to complete the offering and the intended use of net proceeds. The Operating Partnership has based these forward-looking statements on its current expectations and assumptions about future events. While the Operating Partnership's management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond the Operating Partnership's control and could cause actual results to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company or the Operating Partnership undertakes no obligation to update any forward-looking statements to conform to actual results or changes in their expectations, unless required by applicable law. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of the Company in general, see the Company's and the Operating Partnership's Annual Report on Form 10-K for the year ended December 31, 2023, and in the Company's and the Operating Partnership's subsequent filings with the SEC.
AMH Contact:
Nicholas Fromm
Investor Relations
Phone: (855) 794-2447
Email: investors@amh.com
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SOURCE AMH
FAQ
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