Beazer Homes USA, Inc. (NYSE: BZH) has just filed a mixed securities shelf registration that will allow it to sell securities in the amount of up to $750 million. This will allow Beazer and its subsidiaries to sell any combination of Senior Debt Securities, Subordinated Debt Securities, Common Stock, Preferred Stock, Depositary Shares, Warrants, Rights Stock Purchase Contracts, Stock Purchase Units, and Guarantees of Debt Securities.
The use of proceeds is said to be general corporate purposes, which it noted “may include the retirement or refinancing of indebtedness under our outstanding debt securities.”
At the company’s latest earnings it said that homebuilding revenues from continuing operations declined 30.8% in the September quarter, along with a 24.3% decline in home closings and an 8.6% decline in the average selling price of homes.
It also ended its last quarter with cash and cash equivalents of $556.8 million, including restricted cash of $49.5 million to collateralize outstanding letters of credit; and that is after it sold $250 million in aggregate in senior secured notes. In the rearnings release, the company even said specifically that it intends to file an “S-3” which would be this filing this afternoon.
As far as how this relates to the size of the company, Beazer has an equity market cap of a mere $215.5 million after closing up 0.5% today at $5.49.
JON C. OGG
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.