COLUMBIA, S.C. - United Homes Group, Inc. (NASDAQ: UHG) has set the pricing for its secondary public offering of shares, the company confirmed today. The offering involves 7,420,057 shares of Class A common stock priced at $5.00 each, significantly below the current trading price of $6.10. According to InvestingPro data, the company's market capitalization stands at $295.3 million, with the stock down about 28% year-to-date. Notably, key figures including the Executive Chairman and Interim CEO, along with affiliates of Kennedy Lewis (JO:LEWJ) Agency Partners, LLC, and certain other identified persons, are purchasing a portion of these shares.
The transaction is set to conclude on December 11, 2024, with the fulfillment of certain conditions. Additionally, the underwriter has been granted the option to buy up to 1,113,009 extra shares from the selling stockholders within a 30-day period. United Homes Group will not sell any shares nor receive proceeds from this offering. InvestingPro analysis reveals the company maintains strong liquidity with a current ratio of 2.25, though it faces profitability challenges with negative earnings in the last twelve months.
In tandem with the offering's close, the company will redeem convertible notes payable for a total of $70 million plus accrued interest, offering cash and 10,168,850 shares of Class A common stock in exchange. Selling stockholders have agreed to a 120-day holding period for the exchanged shares not sold in the offering, with certain exceptions. If the underwriter exercises its option in full, the selling stockholders will retain about 1.6 million of the exchanged shares.
To finance the redemption, United Homes Group is entering into a credit agreement for a $70 million subordinated loan with Great Southern Homes, Inc., Kennedy Lewis acting as the administrative agent, and other lenders.
Jamie Pirrello, the Interim CEO of United Homes Group, expressed satisfaction with the refinancing of the company's convertible debt, noting the positive impact on capital structure, public float, and interest expenses. Michael Nieri, Executive Chairman & Director, also highlighted the strengthened partnership with Kennedy Lewis.
BTIG is serving as the sole book-running manager for the offering, which follows the company's registration statement previously filed and declared effective by the Securities and Exchange Commission.
United Homes Group is a residential builder operating in southeastern U.S. markets, employing a land-light strategy that focuses on building a variety of single-family homes. The company has achieved revenue growth of 6.19% over the last twelve months, generating $445.7 million in revenue. For deeper insights into UHG's financial health and growth prospects, including 8 additional key ProTips, visit InvestingPro.
This news summary is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy any securities.
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