Analyst Summary
- Forestar Group Inc. completed an offering of $500 million in aggregate principal amount of its 6.500% Senior Notes due 2033 in a private placement.
- The Notes were issued under an Indenture, dated as of March 14, 2025, among the Company, the subsidiary guarantors party thereto and U.S. Bank Trust Company, National Association, as trustee.
- The Notes are the Company’s senior unsecured obligations and rank equally with the Company’s other existing and future senior unsecured indebtedness.
- The notes are fully and unconditionally guaranteed, jointly and severally, by each of the Company’s restricted subsidiaries to the extent such subsidiaries guarantee the Company’s revolving credit facility.
- The Notes bear interest at a rate of 6.500% per annum and were priced at par.
- The Notes will pay interest semi-annually in cash in arrears on March 15 and September 15 of each year, commencing on September 15, 2025.
- The Notes will mature on March 15, 2033.
- The Company accepted for payment all such 2026 Notes validly tendered and not validly withdrawn in the Tender Offer and made payment for such 2026 Notes on March 14, 2025 using a portion of the net proceeds from the Offering.