American Homes to Sell Preferred SharesTuesday, October 8, 2013
American Homes 4 Rent is conducting a $15 million secondary offering of preferred shares, according to a Tuesday regulatory filing.
The Agoura Hills real estate investment trust plans to sell the preferred stock for $25 a share. The stock will pay a quarterly dividend and is convertible to common stock after Sept. 30, 2017.
The company plans to use the proceeds from the offering to continue to acquire and renovate single-family properties, to repay borrowings under its credit facility and for general business purposes.
Raymond James and Jefferies are the joint book-running managers for the offering.
American Homes is the second-largest owner of single-family homes in the U.S., with 19,825 properties as of July 31.
The company went public July 31 in an IPO that raised more than $800 million. It has since increased its borrowing capacity and formed a joint venture to purchase distressed U.S. mortgages.
Shares closed down 15 cents, or less than 1 percent, to $15.45 on the New York Stock Exchange.