CalAtlantic Group, Inc. (NYSE: CAA) after market close Wednesday announced the proposed public offering by MP CA Homes LLC, an affiliate of MatlinPatterson Global Advisers LLC, of 10,000,000 shares of the total 42,842,557 shares of the company’s common stock held by the selling stockholder. MatlinPatterson was a primary investor in Standard Pacific Homes, Inc., which was merged with Ryland Homes to create CAA.
The selling stockholder also expects to grant the underwriters of the proposed common stock offering an option to purchase up to an additional 1,500,000 shares of the Company’s common stock. Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are acting as joint book-running managers for the proposed common stock offering.
CAA will not sell any shares in the proposed common stock offering and will not receive any of the proceeds from the sale by MP CA Homes LLC.
CAA has also entered into an agreement with the selling stockholder to repurchase shares of the company’s common stock directly from the selling stockholder in an aggregate amount of up to $100,000,000 in a private, non-underwritten transaction at a purchase price per share equal to the price paid by the underwriters in the proposed public offering; provided that such purchase price per share does not exceed a specified price. The share repurchase is expected to be consummated concurrently with the public offering and is conditioned upon the closing of the public offering. However, the closing of the public offering is not conditioned upon the consummation of the share repurchase. CAA said it intends to fund the share repurchase from cash on hand.
Shares of CAA closed down 28 cents at $35.83 and fell three cents more to $35.80 in after-market trading Wednesday.
