Forestar Reports $100M Convertible Notes Offering

Forestar Group FOR today announced that its wholly-owned subsidiary, Forestar Real Estate Group Inc. ("Forestar USA"), intends to offer, in a private transaction, $150 million aggregate principal amount of senior secured notes due 2019 (the "Secured Notes"), subject to market conditions and other factors. Concurrently with the Secured Notes offering, Forestar intends to offer, in a private transaction, $100 million aggregate principal amount of convertible senior notes due 2018 (the "Convertible Notes"), subject to market conditions and other factors. The initial purchasers in the Convertible Notes offering have an option to purchase a maximum of an additional $15 million aggregate principal amount of Convertible Notes. The interest rates and certain other terms of the Secured Notes and Convertible Notes, including in the case of the Convertible Notes, the conversion rate, will be determined at the time of the pricing of the offerings.