Green Brick Partners, Inc. Prices $50.0 Million Offering of Depositary Shares

Rhea-AI Summary

Green Brick Partners (NYSE: GRBK) has announced a public offering of 2,000,000 depositary shares, priced at $25.00 each, raising $50 million before expenses. The offering is set to close around December 23, 2021. Each depositary share represents a 1/1000th interest in the Company’s 5.75% Series A Cumulative Perpetual Preferred Stock, with dividends to be paid at the discretion of the Board. The net proceeds will support general corporate purposes, including business expansion and debt repayment. The shares will trade under the symbol “GRBK PRA.”

Positive

• Successfully raising $50 million through a public offering.
• Offering shares priced at $25.00, which may attract investor interest.
• Net proceeds to be used for business expansion and debt repayment.

Negative

• Market conditions may affect the completion of the offering.
• Listing of depositary shares on NYSE is subject to approval.

PLANO, Texas, Dec. 16, 2021 (GLOBE NEWSWIRE) -- (NYSE: GRBK) Green Brick Partners, Inc., (the “Company”), today announced the pricing of its underwritten registered public offering of 2,000,000 depositary shares at an initial public offering price of $25.00 per depositary share, raising gross proceeds of $50.0 million before deducting underwriting discounts and other estimated offering expenses. The offering is expected to close on or about December 23, 2021, subject to customary closing conditions.

Each depositary share represents a 1/1000th fractional interest in a share of the Company’s 5.75% Series A Cumulative Perpetual Preferred Stock (the “Series A Preferred Stock”). The Company’s depositary shares are expected to begin trading on the NYSE under the symbol “GRBK PRA” within 30 business days of the closing date of this offering, if approved.
Dividends on the Series A Preferred Stock underlying the depositary shares will be paid when declared by the Board at a fixed rate of 5.75% with liquidation preference equivalent to $25.00 per depositary share. In connection with the offering, the Company has granted the underwriters a 30-day option to purchase up to an additional 300,000 depositary shares.
The Company expects to use the net proceeds of this offering for general corporate and working capital purposes, which may include expansion of the business, repayment of debt, and repurchases of its common stock under the Company’s authorized plan.

BTIG, LLC is acting as sole book-running manager for this offering. InspereX LLC and Janney Montgomery Scott LLC are acting as co-managers for this offering.

The offering of these securities is being made pursuant to an effective shelf registration statement on Form S-3 (333-250977), which was initially filed with the Securities and Exchange Commission (the “SEC”) on November 25, 2020 and declared effective by the SEC on December 4, 2020. The offering of these depositary shares will be made only by means of a prospectus and prospectus supplement.

A copy of the prospectus and prospectus supplement relating to these securities may be obtained, when available, from the website of the SEC at http://www.sec.gov or by contacting: BTIG, LLC, 65 East 55^th Street, New York, NY 10022, email: ProspectusDelivery@btig.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. is a diversified homebuilding and land development company. Green Brick owns five subsidiary homebuilders in Dallas, Texas (CB JENI Homes, Normandy Homes, Southgate Homes, Trophy Signature Homes, and a 90% interest in Centre Living Homes), as well as a controlling interest in a homebuilder in Atlanta, Georgia (The Providence Group) and an 80% interest in a homebuilder in Port St. Lucie, Florida (GHO 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, Green Brick Mortgage, and BHome 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. For more information about Green Brick Partners Inc.’s subsidiary homebuilders, please visit greenbrickpartners.com/homebuilders.

Forward Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Act of 1995. These statements concern expectations, beliefs, projections, plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts and typically include the words “anticipate,” “believe,” “consider,” “estimate,” “expect,” “feel,” “intend,” “plan,” “predict,” “seek,” “strategy,” “target,” “will” or other words of similar meaning. Forward-looking statements in this press release include statements regarding the terms and conditions and timing of the offering, the intended use of proceeds and expected listing of the depositary shares on the NYSE. These forward-looking statements reflect the Company’s current views about future events and involve estimates and assumptions which may be affected by risks and uncertainties in its business, as well as other external factors, which could cause future results to materially differ from those expressed or implied in any forward-looking statement. These risks include, but are not limited to, market conditions and the risk that the offering cannot be successfully completed on the anticipated terms, or at all, and that the depositary shares do not meet the NYSE listing requirements. For a more detailed discussion of these and other risks and uncertainties applicable to the Company and the offering, please see the prospectus supplement related to the offering and the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission. The Company undertakes no obligation to update the information contained in this press release to reflect subsequently occurring events or circumstances except as required by law.

For inquiries regarding Green Brick Partners, Inc., please contact the following persons:

Investors Relation Contacts	Media Contact
Richard A. Costello, Chief Financial Officer	Shalott Cecchini, Director of Marketing
rcostello@greenbrickpartners.com	scecchini@greenbrickpartners.com

FAQ

What is Green Brick Partners' stock symbol?

Green Brick Partners trades under the stock symbol GRBK.

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

The expected closing date for the offering is around December 23, 2021.

How much money is Green Brick Partners raising through the offering?

Green Brick Partners is raising $50 million through its public offering.

What will the proceeds from the offering be used for?

Proceeds will be used for general corporate purposes, including expansion and debt repayment.

What is the dividend rate for the Series A Preferred Stock?

The Series A Preferred Stock carries a fixed dividend rate of 5.75%.