Forestar exercises greenshoe, lifts 3.75% convertibles to $125 million

By Toni Weeks

San Luis Obispo, Calif., Feb. 26 - Underwriters for Forestar Group Inc.'s offering of 3.75% convertibles due March 1, 2020 exercised in full their over-allotment option, bringing total proceeds to $125 million.

Forestar priced $110 million of the convertibles with a $15 million greenshoe on Feb. 20.

The bookrunner is Goldman Sachs & Co. KeyBank Capital Markets Inc., JMP Securities LLC, Capital One Southcoast Inc., J.P. Morgan Securities LLC and UBS Securities LLC are the co-managers.

The Austin, Texas-based real estate, mineral and fiber resources company said it will use the proceeds to repay outstanding borrowings under its revolving line of credit and for general corporate purposes, including investments in oil and gas exploration, drilling, real estate acquisition and development.

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