Forestar Announces Pricing of $500 Million Offering of Senior Unsecured Notes
Forestar Group (NYSE: FOR) has announced the pricing of $500 million in senior unsecured notes due 2033, with a 6.500% interest rate payable semi-annually. The Notes will be offered through private placement to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S of the Securities Act.
The offering is expected to close on March 14, 2025. The company plans to use the proceeds to fund a tender offer for its existing $400 million 3.850% Senior Notes due 2026 and for general corporate purposes, including repaying outstanding credit facility borrowings.
Forestar Group (NYSE: FOR) ha annunciato la quotazione di 500 milioni di dollari in note senior non garantite con scadenza nel 2033, con un tasso di interesse del 6,500% pagabile semestralmente. Le Note saranno offerte tramite collocamento privato a investitori istituzionali qualificati ai sensi della Regola 144A e a persone non statunitensi secondo il Regolamento S del Securities Act.
Si prevede che l'offerta si chiuda il 14 marzo 2025. L'azienda intende utilizzare i proventi per finanziare un'offerta di acquisto per le sue note senior esistenti da 400 milioni di dollari con un tasso del 3,850% in scadenza nel 2026 e per scopi aziendali generali, inclusa la restituzione dei prestiti delle linee di credito in essere.
Forestar Group (NYSE: FOR) ha anunciado el precio de 500 millones de dólares en notas senior no garantizadas con vencimiento en 2033, con una tasa de interés del 6,500% pagadera semestralmente. Las Notas se ofrecerán a través de colocación privada a compradores institucionales calificados bajo la Regla 144A y a personas no estadounidenses bajo la Regulación S de la Ley de Valores.
Se espera que la oferta cierre el 14 de marzo de 2025. La empresa planea utilizar los ingresos para financiar una oferta de compra de sus notas senior existentes por 400 millones de dólares con una tasa del 3,850% que vencen en 2026 y para fines corporativos generales, incluida la devolución de los préstamos de la línea de crédito pendiente.
Forestar Group (NYSE: FOR)는 2033년 만기인 5억 달러의 고위험 무담보 채권을 6.500%의 이자율로 반기별 지급하는 가격을 발표했습니다. 이 채권은 144A 규정에 따라 자격을 갖춘 기관 투자자에게, 그리고 증권법의 S 규정에 따라 비미국인에게 사모로 제공됩니다.
이번 공모는 2025년 3월 14일에 마감될 것으로 예상됩니다. 회사는 수익금을 기존의 4억 달러 규모의 3.850% 고위험 채권(2026년 만기)에 대한 입찰 제안을 위한 자금과 미지급 신용 대출 상환을 포함한 일반 기업 용도로 사용할 계획입니다.
Forestar Group (NYSE: FOR) a annoncé le prix de 500 millions de dollars en obligations senior non garanties arrivant à échéance en 2033, avec un taux d'intérêt de 6,500% payable semestriellement. Les obligations seront offertes par placement privé à des acheteurs institutionnels qualifiés en vertu de la règle 144A et à des personnes non américaines en vertu de la réglementation S de la loi sur les valeurs mobilières.
La clôture de l'offre est prévue pour le 14 mars 2025. L'entreprise prévoit d'utiliser les produits pour financer une offre de rachat de ses obligations senior existantes de 400 millions de dollars à un taux de 3,850% arrivant à échéance en 2026 et pour des besoins d'entreprise généraux, y compris le remboursement des emprunts de lignes de crédit en cours.
Forestar Group (NYSE: FOR) hat die Preisgestaltung von 500 Millionen Dollar an unbesicherten vorrangigen Anleihen mit Fälligkeit im Jahr 2033 bekannt gegeben, die einen Zinssatz von 6,500% haben, der halbjährlich zahlbar ist. Die Anleihen werden im Rahmen einer Privatplatzierung an qualifizierte institutionelle Käufer gemäß Regel 144A und an Nicht-US-Personen gemäß der Regelung S des Wertpapiergesetzes angeboten.
Der Abschluss des Angebots wird für den 14. März 2025 erwartet. Das Unternehmen plant, die Erlöse zur Finanzierung eines Übernahmeangebots für seine bestehenden 400 Millionen Dollar 3,850% vorrangigen Anleihen mit Fälligkeit 2026 sowie für allgemeine Unternehmenszwecke, einschließlich der Rückzahlung ausstehender Kreditlinien, zu verwenden.
- New $500M notes offering strengthens liquidity position
- Refinancing of existing $400M notes at market rates
- Opportunity to reduce credit facility debt
- Higher interest rate of 6.500% vs existing 3.850% notes
- Increased interest expense will affect profitability
The Notes will rank equally in right of payment to all of Forestar’s existing and future senior unsecured debt. Interest will be payable semi-annually at a rate of
Forestar intends to use the net proceeds from this offering to fund a tender offer for any and all of its
The Notes have not been and will not be registered under the Securities Act or any state securities laws and may not be offered or sold in
This announcement does not constitute an offer to sell or a solicitation of an offer to buy the Notes or any other security and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which, or to any persons to whom, such an offer, solicitation or sale would be unlawful. Any offers of the Notes will be made only by means of a private offering memorandum.
About Forestar Group Inc.
Forestar Group Inc. is a residential lot development company with operations in 62 markets and 24 states. Based in
Forward-Looking Statements
Portions of this document may constitute “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Although Forestar believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. All forward-looking statements are based upon information available to Forestar on the date this release was issued. Forestar does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Factors that may cause the actual results to be materially different from the future results expressed by the forward-looking statements include, but are not limited to: the effect of D.R. Horton’s controlling level of ownership on Forestar and the holders of Forestar’s securities; Forestar’s ability to realize the potential benefits of the strategic relationship with D.R. Horton; the effect of Forestar’s strategic relationship with D.R. Horton on its ability to maintain relationships with its customers; the cyclical nature of the homebuilding and lot development industries and changes in economic, real estate and other conditions; the impact of significant inflation, higher interest rates or deflation; supply shortages and other risks of acquiring land, construction materials and skilled labor; the effects of public health issues such as a major epidemic or pandemic; the impacts of weather conditions and natural disasters; health and safety incidents relating to Forestar’s operations; Forestar’s ability to obtain or the availability of surety bonds to secure its performance related to construction and development activities and the pricing of bonds; the impact of governmental policies, laws or regulations and actions or restrictions of regulatory agencies; Forestar’s ability to achieve its strategic initiatives; continuing liabilities related to assets that have been sold; the cost and availability of property suitable for residential lot development; general economic, market or business conditions where Forestar’s real estate activities are concentrated; Forestar’s dependence on relationships with national, regional and local homebuilders; competitive conditions in its industry; obtaining reimbursements and other payments from governmental districts and other agencies and timing of such payments; Forestar’s ability to succeed in new markets; the conditions of the capital markets and Forestar’s ability to raise capital to fund expected growth; Forestar’s ability to manage and service its debt and comply with its debt covenants, restrictions and limitations; the volatility of the market price and trading volume of Forestar’s common stock; Forestar’s ability to hire and retain key personnel; and the strength of Forestar’s information technology systems and the risk of cybersecurity breaches and its ability to satisfy privacy and data protection laws and regulations. Additional information about issues that could lead to material changes in performance is contained in Forestar’s annual report on Form 10-K and its most recent quarterly report on Form 10-Q, both of which are filed with the Securities and Exchange Commission.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250305622981/en/
Chris Hibbetts, 817-769-1860
Vice President of Finance & Investor Relations
InvestorRelations@forestar.com
Source: Forestar Group Inc.
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