Beazer pushing up bond conversion « « AtlantaRecruiters ...
Is swapping out a set of its bonds and tangible equity for new stock, the company said Monday.
It’s an acceleration of the conversion those holdings would have made to equity in a year, noted spokeswoman Carey Phelps. Beazer is offering a premium to investors for agreeing to push up the conversion by a year.
The move could save Beazer (NYSE: BZH) $5 million in interest, Phelps said.
Bond investors will take a $5 haircut on the deal. The Atlanta-based homebuilder is swapping 5.75 shares for every $25 of bonds. Beazer is trading at around $3.50, meaning bondholders would get about $20 for each $25 of bonds.
Investors have until March 12 to agree to the deal, run by Citigroup Global Markets Inc.
