Green Brick Partners Announces Pricing of Secondary Offering of Shares of Common Stock by Selling Stockholders

Rhea-AI Summary

Green Brick Partners (Nasdaq: GRBK) has priced a secondary offering of 6,000,000 shares, raising approximately $125.7 million for certain affiliates of Greenlight Capital. The underwriters are granted a 30-day option to purchase an additional 900,000 shares. Green Brick will not receive any proceeds from the sale. The offering is expected to close on January 27, 2021, subject to standard conditions. Barclays Capital and Goldman Sachs are the joint book-running managers for this offering, which is conducted under an effective shelf registration statement with the SEC.

Positive

• Successful pricing of a secondary offering raising $125.7 million.
• Potential for an additional 900,000 shares to be sold through underwriters.

Negative

• Green Brick will not receive any proceeds from the share sale, limiting financial benefit.

PLANO, Texas, Jan. 25, 2021 (GLOBE NEWSWIRE) -- Green Brick Partners, Inc. (Nasdaq: GRBK), a leading national homebuilder and land development company, today announced the pricing of a secondary offering of 6,000,000 shares of its common stock by certain affiliates of Greenlight Capital, Inc. (the “Selling Stockholders”) for total gross proceeds (before estimated expenses) of approximately $125.7 million. The Selling Stockholders have also granted the underwriters a 30-day option to purchase up to an additional 900,000 shares of Green Brick common stock. Green Brick will not receive any of the proceeds from the sale of the shares by the Selling Stockholders. The offering is expected to close on January 27, 2021, subject to customary closing conditions.

The underwriters for the offering intend to offer the shares for sale from time to time in one or more transactions on NASDAQ, in the over-the-counter market, through negotiated transactions or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices.

Barclays Capital Inc. and Goldman Sachs & Co. LLC are acting as joint book-running managers for the offering.

Green Brick has filed a shelf registration statement on Form S-3 relating to the offering (including a prospectus) with the Securities and Exchange Commission (the “SEC”) that has become effective. The offering has been made only by means of a prospectus supplement and the accompanying prospectus. Before you invest, you should read the prospectus supplement, the accompanying prospectus and any other documents that Green Brick may file with the SEC for more complete information about the Green Brick and this offering. Copies of the final prospectus supplement and the accompanying prospectus relating to this offering, when available, may be obtained by using EDGAR on the SEC website at www.sec.gov or by contacting: (1) Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by calling (888) 603-5847, or by email at barclaysprospectus@broadridge.com or (2) Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, New York 10282, by telephone at 1-866-471-2526 or by emailing prospectus-ny@ny.email.gs.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Green Brick Partners, Inc.

Green Brick Partners, Inc. (Nasdaq: GRBK) is a diversified homebuilding and land development company. Green Brick owns four homebuilders in Dallas, Texas (CB JENI Homes, Normandy Homes, Southgate Homes and Trophy Signature Homes), as well as a controlling interest in homebuilders in Atlanta, Georgia (The Providence Group), Port St. Lucie, Florida (GHO Homes), and Dallas, Texas (Centre Living Homes). Green Brick also owns a noncontrolling interest in Challenger Homes in Colorado Springs, Colorado and retains interests in related financial services platforms, including Green Brick Title, Providence Group Title, and Green Brick Mortgage. The Company is engaged in all aspects of the homebuilding process, including land acquisition and development, entitlements, design, construction, marketing, and sales for its residential neighborhoods and master planned communities.

Forward-Looking and Cautionary Statements:
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements other than statements of historical or current fact included in this press release are forward-looking statements. Forward-looking statements include statements concerning the conduct of the offering and the size and terms of the offering. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Green Brick’s control, including, without limitation, risks and uncertainties related to market conditions, that the size of the offering could change or the offering could be terminated, and the satisfaction of customary closing conditions related to the offering. Actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in the sections entitled “Risk Factors” and elsewhere in Green Brick’s Annual Report Annual Report on Form 10-K and its Quarterly Report on Form 10-Q for the period ended September 30, 2020 filed with the Securities and Exchange Commission, as well as in the registration statement on Form S-3 related to the shares filed with the SEC. The forward-looking statements included in this press release should not be unduly relied upon, represent Green Brick’s views only as of the date of this press release and do not represent Green Brick’s views as of any subsequent date. Green Brick undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, changes in Green Brick’s expectations or otherwise, except as required by law.

Contact: Richard A. Costello
Chief Financial Officer
(469) 573-6755

FAQ

What is the significance of the Green Brick Partners secondary offering for GRBK investors?

The secondary offering could impact GRBK stock by increasing liquidity, but since the company does not receive proceeds, it may not provide direct financial benefit.

When is the expected closing date for the Green Brick Partners offering?

The offering is expected to close on January 27, 2021, subject to customary closing conditions.

Who are the underwriters for Green Brick Partners' secondary offering?

The underwriters for the offering are Barclays Capital and Goldman Sachs.

How much money will the Green Brick Partners secondary offering raise?

The offering is expected to raise approximately $125.7 million before expenses.

Will Green Brick Partners receive any proceeds from the share offering?

No, Green Brick will not receive any proceeds from the sale of shares by the Selling Stockholders.