Forestar Announces Pricing of $400 Million Offering of Senior Unsecured Notes
April 07 2021 - 4:05PM
Business Wire
Forestar Group Inc. (NYSE: FOR) (“Forestar”) today announced
that it has priced an offering of $400 million aggregate principal
amount of 3.850% senior unsecured notes due 2026 (the “Notes”). The
Notes were offered and will be sold in a private placement to
qualified institutional buyers pursuant to Rule 144A under the
Securities Act of 1933, as amended (the “Securities Act”), and to
non-U.S. persons in transactions outside the United States pursuant
to Regulation S under the Securities Act. The offering is expected
to close on April 21, 2021, subject to customary closing
conditions.
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 3.850% per year for the
Notes. The Notes will mature on May 15, 2026.
Forestar intends to use the net proceeds from this offering to
fund the redemption of its $350 million aggregate principal amount
of existing 8.000% Senior Notes due 2024. Excess net proceeds will
be used for general corporate purposes, including to fund land
acquisition and development activities.
The Notes have not been registered under the Securities Act or
any state securities laws and may not be offered or sold in the
United States or to, or for the benefit of, U.S. persons absent
registration under, or an applicable exemption from, the
registration requirements of the Securities Act and applicable
state securities laws.
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 51 markets and 21 states at December 31, 2020
and is a majority-owned subsidiary of D.R. Horton, Inc. (“D.R.
Horton”), the largest homebuilder by volume in the United States
since 2002.
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
impact of the COVID-19 pandemic on the economy and Forestar’s
business; the cyclical nature of the homebuilding and lot
development industries and changes in economic, real estate and
other conditions; competitive conditions in Forestar’s industry;
changes in Forestar’s business strategy and Forestar’s ability to
achieve its strategic initiatives; continuing liabilities related
to assets that have been sold; the impact of governmental policies,
laws or regulations and actions or restrictions of regulatory
agencies; 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; 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; 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20210407005918/en/
Investor Relations: Jessica Hansen, 817-390-8195
InvestorRelations@forestar.com
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