Beazer Homes USA completes solicitation of $1.52B in senior notes
Single-family homebuilder Beazer Homes USA, Inc. (NYSE: BZH) reported today that it successfully completed its previously announced solicitation of consents from the holders of its $1.525 billion of outstanding senior notes and senior convertible notes to approve proposed amendments and a proposed waiver for indentures under which the notes were issued.
Beazer said it received consents from holders of more than a majority of the aggregate principal amount of each series of the notes. Beazer, along with its trustee, has executed supplemental indentures to amend the indentures.
Beazer amended the supplemental indentures to change the definition of “permitted liens” in order to restrict it from securing additional debt in excess of $7 million until Beazer has four consecutive fiscal quarters with a consolidated fixed charge coverage ratio of at least 2.0 to 1.0.
The consents also provided Beazer with a waiver of any and all defaults under the indentures that may have occurred or may occur on or prior to May 15, 2008 due to Beazer’s failure to file or deliver reports or other information it would be required to file with the Securities and Exchange Commission.
Shares of Beazer (BZH) gained $0.20, or 1.67%, to $12.20 at 12:22 p.m. ET. Shares of Beazer have been trading in the range of $ 8.00 to $48.60 for the past 52 weeks.
