Beazer Homes USA Inc. said Tuesday it will begin offerings of new common stock and convertible subordinated debt. The home builder's shares tumbled in extended trading.
Beazer said it intends to use the proceeds to replace funds used to refinance debt.
Beazer plans to issue 18 million shares of stock, equal to 45 percent of the company's outstanding shares as reported in a recent regulatory filing. At Tuesday's closing price of $5.42, the shares would be worth $97.6 million.
The company also plans to issue $50 million worth of mandatory convertible subordinated notes due in 2013.
Beazer said it plans to grant underwriters a 30-day option to buy up to 15 percent more shares and notes to cover over-allotments.
Proceeds would replenish funds used to redeem 8.625 percent senior notes that are due in 2011, which Beazer said it would call in before closing the offerings, and for general purposes including buying back other debt.
Citigroup and Credit Suisse affiliates are serving as the joint book-running managers.
In aftermarket trading, Beazer shares lost 42 cents, or 7.7 percent, to $5. They added 16 cents during the day's trading session.
Shares of Beazer have ranged from 24 cents to $6.93 over the past year.