Green Brick Partners has issued $37.5 million of senior unsecured notes due in 2027 at 3.35% to Prudential Private Capital in a Section 4(a)(2) private placement transaction
PLANO, TX – (August 28, 2020) – Green Brick Partners, Inc. (Nasdaq: GRBK) (“Green Brick”) is pleased to announce that Green Brick has issued $37.5 million of senior unsecured notes due in 2027 at a fixed rate of 3.35% per annum to Prudential Private Capital in a Section 4(a)(2) private placement transaction. This is the second issuance of senior notes by the Company to Prudential Private Capital, following the issuance of $75.0 million of senior unsecured notes due in 2026 at a fixed rate of 4.00% in August 2019.
“We are very pleased to be working with Prudential Private Capital on our second note issuance together,” said Richard Costello, CFO of Green Brick Partners. “Our demonstrated track record of risk-adjusted growth, position in some of the best markets in the country, and uniquely strong returns among our peers has enabled us to price 7-year notes at a fixed rate of 3.35%. This rate is comparable with that of long-term rates paid by lower-leveraged large-cap builders.”
The Company expects to use the net proceeds from the issuance of the senior unsecured notes to repay borrowings under existing revolving credit facilities and for general corporate purposes.
Jim Brickman, CEO and Co-Founder of Green Brick Partners, added “Our core growth strategy is to build our brands with a homegrown focus, using local operators who have decades of experience in their markets and have built a strong network of suppliers, subcontractors, and land sellers to drive success. Following this offering, our capital structure will position us exceptionally well to deliver on our growth objectives and provide Green Brick and our Team Builders with another source of efficient long-term capital.”
“We were able move quickly and close on an additional investment in Green Brick as the vision and culture of the Green Brick management team are much like our own,” said Julia Buthman, Managing Director, Prudential Private Capital. “We are pleased to expand our relationship with Green Brick through our additional investment, and value the management team’s relationship-oriented approach and excellent track record,” added Brooke Ansel, Director, Prudential Private Capital.
The senior unsecured notes have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “Act”) or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Act and applicable state securities laws.
For additional details, please refer the Form 8-K that was filed with the Securities and Exchange Commission on August 26, 2020.
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 $96.5 billion (as of 6/30/20). For more information about Prudential Private Capital, please visit https://prudentialprivatecapital.com.
Forward-Looking and Cautionary Statements:
This press release is for information only, does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. Any statements in this press release about Green Brick’s expectations, beliefs, plans, objectives, prospects, financial condition, assumptions or future events or performance that are not historical facts are forward-looking statements. These statements are often, but not always, made through the use of words or phrases such as “may,” “will,” “should,” “predicts,” “potential,” “expects,” “future,” “positioned,” “believes,” “projects,” “estimates” and similar expressions, as well as statements in the future tense. These statements are based on assumptions that Green Brick has made in light of its experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances, as of the date of this press release. All such forward-looking statements involve estimates and assumptions that are subject to factors that could cause actual results to differ materially from the results expressed in the statements, and you should not place undue reliance on any such forward-looking statements. Among the factors that could cause actual results to differ materially are the following: general economic conditions, seasonality, cyclicality and competition in the homebuilding industry; the failure to recruit, retain and develop highly skills and competent employees; management and integration of acquisitions; labor and raw material shortages; an inability to acquire land for reasonable prices; an inability to develop and sell communities; government regulation risks; mortgage financing availability and volatility; severe weather or natural disasters; difficulty in obtaining sufficient capital; poor relations with community residents; and our debt and related service obligations. Additional factors that could cause actual results to differ are discussed in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s annual and quarterly reports filed with the Securities and Exchange Commission. Green Brick undertakes no obligation to update any forward-looking statement except as required by law.