Dream Finders Homes Raises $225M via Series B Preferred Stock Sale
Dream Finders Homes, Inc. announced the sale of 225,000 shares of its newly created Series B Convertible Preferred Stock to certain institutional investors for an aggregate purchase price of $225 million. The proceeds were used to redeem existing Series A Convertible Preferred Stock, with any remainder for general corporate purposes. The company also has an option to sell an additional 450,000 shares of Series B Convertible Preferred Stock for $450 million, contingent upon the satisfaction of conditions for its merger with Beazer Homes USA, Inc. The Series B Convertible Preferred Stock carries a 12.00% cumulative dividend rate, with potential increases, and has specific conversion and redemption rights.
Key Highlights
- Dream Finders Homes sold 225,000 shares of Series B Convertible Preferred Stock for $225 million.
- An additional 450,000 shares of Series B Convertible Preferred Stock may be sold for $450 million upon merger completion.
- Proceeds from the first closing were used to redeem existing Series A Convertible Preferred Stock.
- Series B Convertible Preferred Stock accrues cumulative dividends at 12.00% per annum, payable quarterly.
- The dividend rate on Series B Convertible Preferred Stock can increase up to 15.00% over time.
- Series B Convertible Preferred Stock is not convertible by purchasers until the sixth anniversary, except in case of a Fundamental Change.
- The Company entered into Subscription Agreements and a Certificate of Designations for the Series B Convertible Preferred Stock.
Price Impact
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