PLANO, Texas, Aug. 13, 2019 (GLOBE NEWSWIRE) -- Green Brick Partners, Inc. (Nasdaq: GRBK) is pleased to announce that Green Brick has issued $75.0 million of senior unsecured notes due in 2026 at a fixed rate of 4.00% per annum to Prudential Private Capital in a Section 4(a)(2) private placement transaction. The Company expects to use the net proceeds from the issuance of the senior unsecured notes to repay borrowings under the Company’s existing revolving credit facilities.
"Green Brick Partners is very pleased to announce our inaugural issuance of senior unsecured notes,” said Richard Costello, CFO of Green Brick Partners. “Our superior credit metrics allowed us to price 7-year notes at a fixed rate at 4.00%. This rate is only slightly higher than the long-term rates paid by the lower-leveraged large-cap builders and more attractive than the long-term rates paid by all small-cap and all mid-cap builders.”
Principal on the senior unsecured notes is required to be paid in increments of $12.5 million on August 8, 2024 and $12.5 million on August 8, 2025. The final principal payment of $50.0 million is due on August 8, 2026.
Jim Brickman, CEO of Green Brick Partners, added “this transaction represents another positive step in Green Brick’s long-term balance sheet strategy by laddering debt maturities, locking-in long-term borrowings at attractive rates, enabling us to have additional financial flexibility, and partnering with a world-class organization in Prudential Private Capital. The additional proceeds will enable us to continue to grow while striving to deliver the best risk-adjusted returns in the industry.”
About Green Brick Partners, Inc.:
Green Brick Partners, Inc. (Nasdaq: GRBK) is a diversified homebuilding and land development company. Green Brick owns a controlling interest in five homebuilders in Dallas, Texas (CB JENI Homes, Normandy Homes, Southgate Homes, Centre Living Homes, and Trophy Signature Homes), as well as a homebuilder in Atlanta, Georgia (The Providence Group) and a homebuilder in Port St. Lucie, Florida (GHO Homes). Green Brick also owns a noncontrolling interest in Challenger Homes in Colorado Springs, Colorado and retains interests in related financial services platforms, including Green Brick Title, Providence Group Title, and Green Brick Mortgage. The Company is engaged in all aspects of the homebuilding process, including land acquisition and development, entitlements, design, construction, marketing, and sales for its residential neighborhoods and master planned communities. For more information about Green Brick Partners Inc.’s homebuilding partners, please visit https://greenbrickpartners.com/team-builders/.
About Prudential Private Capital:
For more than 75 years, Prudential Private Capital has been partnering with a wide range of corporations, sponsors, and institutions to provide valuable insights, guidance, and customized capital solutions that enable them to achieve their growth and funding goals. In an industry where capital can seem like a commodity and relationships often fleeting and transactional, we are known for building enduring local partnerships based on a steady and patient commitment to our partners’ long-term capital needs. With regional teams in 14 offices around the world, we manage a portfolio of nearly $89 billion (as of 6/30/19). For more information about Prudential Private Capital, please visit https://prudentialprivatecapital.com.
