Forestar Group Inc. has announced a cash tender offer to purchase any and all of its outstanding 3.850% senior notes due 2026. The offer documents state that the purchase price for each $1,000 principal amount of the notes will be determined based on the fixed spread specified plus the yield based on the offer-side price of the U.S. Treasury reference security, as quoted on the Bloomberg Bond Trader FIT3 series of pages.
The tender offer is set to expire at 5:00 p.m., New York City time, on March 11, 2025, with settlement for all notes tendered before the expiration time expected to be on March 14, 2025. The offer is subject to certain conditions, including the completion of a contemporaneous debt financing by Forestar on terms satisfactory to the company.
Forestar intends to use a portion of the net proceeds from the debt financing to pay the purchase price for notes validly tendered and accepted for purchase pursuant to the tender offer. Following the completion of the tender offer, Forestar or its affiliates may purchase additional notes in the open market, in privately negotiated transactions, through tender offers, exchange offers, or otherwise, or may redeem notes that the company is permitted to redeem pursuant to their terms.
Forestar Group Inc. is a residential lot development company with operations in 62 markets and 24 states. During the twelve-month period ended December 31, 2024, the company delivered more than 14,200 residential lots. Forestar is a majority-owned subsidiary of D.R. Horton, Inc., the largest homebuilder by volume in the United States since 2002. Today the company's shares have moved 2.0% to a price of $21.72. For more information, read the company's full 8-K submission here.
