Forestar plans $135 million of tangible equity units to yield 5.75%-6.25%, up 17.5%-22.5%

By Rebecca Melvin

New York, Nov. 20 - Forestar Group Inc. plans to sell $135 million of three-year tangible equity units, or 5.4 million units at $25.00 each, that were talked at a 5.75% to 6.25% distribution rate and a 17.5% to 22.5% premium, according to a syndicate source.

The convertible units were expected to be priced after the market close on Thursday.

The registered, off-the-shelf deal has a $15 million greenshoe.

Goldman Sachs & Co. is the bookrunning manager.

Co-managers include KeyBanc Capital Markets Inc., JMP Securities LLC, Capital One Securities, Inc., J.P. Morgan Securities LLC, D.A. Davidson & Co. and UBS Securities LLC.

Proceeds were expected to be used for general corporate purposes, including investments in strategic growth opportunities.

Austin, Texas-based Forestar is a real estate, mineral and fiber resources company.

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