Beazer Homes Falls 8% on Stock Offering
Shares of Beazer Homes (NYSE: BZH) are seeing increased weakness during Tuesday's trading session after the company announced public offering of common stock.
Beazer Homes is offering $75 million of its common stock and 3,000,000 (equal to $75 million) of its tangible equity units in the concurrent offerings. The units are comprised of a prepaid stock purchase contract and an unsecured senior amortizing note due 2015.
In addition, Beazer Homes intends to grant the underwriters a 30-day option to purchase up to an additional 15% of the tangible equity units sold to cover over-allotments and a 30-day option to purchase up to an additional 15% of the shares of common stock. Neither offering is contingent upon completion of the other offering. The Company's common stock is listed on the NYSE under the symbol “BZH,” and Beazer Homes intends to apply to list the tangible equity units on the New York Stock Exchange under the symbol “BZT.”
The company intends to use the net proceeds from these concurrent offerings for growth capital, including for approximately $100 million of potential land investments in Florida, California, Texas, North Carolina and Arizona, and for general corporate purposes, including the repayment of outstanding indebtedness.
Tuesday, shares of Beazer Homes were trading down over 7.4 percent, at about $3.13 per share.
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