Source : investing, 12/11/2024
The Woodlands, Texas – LGI Homes, Inc. (NASDAQ: LGIH), a Texas-based home builder, has announced the launch of a private placement aimed at raising $400 million through major creditors’ unsecured bonds maturing in 2032. The offering is aimed at institutional investors who are qualified in accordance with Rule 144A, and certain non-US persons in accordance with Regulation S, both under the Securities Act 1933.
The issuance of bonds is subject to market conditions and other influencing factors. The company’s subsidiaries, which are also guarantors of their revolving credit facilities, are expected to guarantee the bonds initially on a joint and multiple basis.
LGI Homes intends to use the proceeds of this offering to repay a portion of the outstanding loans under the existing revolving credit facility. Pricing details and bond terms will be determined based on prevailing market conditions.
It is important to note that bonds, along with related collateral, will not be registered under the Securities Act or any state securities laws. Consequently, they may not be offered or sold within the United States or to U.S. persons without registration or an applicable exemption from registration requirements.
LGI Homes has a remarkable track record in the home construction industry, having completed more than 70,000 homes since its founding in 2003. The company has earned recognition for its build quality and customer service.
earning it a place on Newsweek’s list of the world’s most trusted companies. In addition, LGI Homes has received awards for its work environment, including the Top Workplaces USA 2024.
The Company’s forward-looking statements, as stated in the press release, refer to plans to use the proceeds of the offering and other aspects of the bonds. However, this data is subject to a variety of risks and uncertainties.
and there is no guarantee that the expected results will be achieved. Investors are advised that the information is based on a press release and should be considered in light of potential risks and uncertainties.
In other recent news, LGI Homes, Inc. reported a successful third quarter in 2024.
with significant increases in both revenue and the number of residential communities. The company delivered 1,757 homes, achieving a record average selling price of $371,004.
and generating revenue of $652 million, recording a 5.6% year-on-year increase. Revised gross profit margin improved slightly to 27.2%.
and diluted earnings per share increased to $2.95, up 4% from the previous year.
The number of the company’s residential communities grew by 30% from the previous year, reaching 138. Despite a slowdown in sales activity in October and a reported cancellation rate of 26.2%.
the long-term outlook remains positive, supported by strong housing market fundamentals. The company is optimistic about demand, citing a strong number of potential homeowners.
LGI Homes expects to close between 6,100 and 6,400 homes in 2024.
with an average selling price expected to range between $360,000 and $370,000. The company has raised its gross margin guidance by 50 basis points.
with expectations of aggregate margins of 24% to 25% and adjusted gross margins of 26% to 27%. Looking ahead, the number of residential communities is expected to grow by 10% to 20% in 2025.
LGI Homes’ recent move to raise $400 million through major creditors’ unsecured bonds is in line with its financial strategy.
as evidenced by the latest Investing Pro data. The company has a market capitalization of $2.55 billion, indicating its significant presence in the homebuilding sector.
Investing Pro’s advice reveals that LGI Homes’ liquid assets exceed short-term liabilities.
which can be further enhanced by this new offering. This financial cushion may provide the company with additional flexibility to manage its debt and invest in growth opportunities.
A company’s profitability multiple of 12.87 indicates that investors are willing to pay a premium for its profits.
possibly due to its strong market position and growth prospects. This is also supported by advice from Investing Pro highlighting LGI Homes’ high yield over the past decade.
Despite the positive indicators, it should be noted that 4 analysts have revised their earnings forecast downward for the coming period.
according to another tip from Investing Pro. This may be a factor that investors should consider when evaluating a company’s near-term performance.
For a more comprehensive analysis, Investing Pro offers additional tips and insights that may be valuable to investors interested in LGI Homes’ financial outlook and market position.
