Forestar Group Inc. Enters into Equity Distribution Agreement with Multiple Sales Agents

Forestar Group Inc. (NYSE: FOR) filed a Form 8-K on November 19, 2024, to announce the entry into an equity distribution agreement with J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Mizuho Securities USA LLC, Wells Fargo Securities, LLC, TD Securities (USA) LLC, Fifth Third Securities, Inc., BofA Securities, Inc., BTIG, LLC, Nomura Securities International, Inc., and Citizens JMP Securities, LLC.

The Equity Distribution Agreement pertains to the offering and sale of shares of Forestar’s common stock, with an aggregate offering price of up to $300 million. Sales of the shares will be conducted through ordinary brokers’ transactions, block transactions, or as otherwise agreed upon between Forestar and the Sales Agents. Under this agreement, Forestar retains the option to sell shares to a Sales Agent as principal for its own account at a price agreed upon during the sale.

The agreement stipulates that each Sales Agent will be entitled to compensation of up to 2% of the gross sales price of the shares sold through them, subject to the volume of shares sold. Forestar is under no obligation to offer or sell any shares under this agreement and reserves the right to suspend offers and sales at any time.

The shares will be issued in accordance with Forestar’s shelf registration statement, effective as of October 2, 2024, and as supplemented by a prospectus supplement dated November 19, 2024. The filing also includes a summary of the Equity Distribution Agreement, with the complete text of the agreement filed as Exhibit 1.1 to the Form 8-K.

Additionally, a legal opinion provided by Gibson, Dunn & Crutcher LLP regarding the shares to be issued under the Equity Distribution Agreement is included in Exhibit 5.1 of the filing. The documents related to Financial Statements and Exhibits have been duly submitted as per Item 9.01 of the filing.

Forestar Group Inc. signed the report on November 19, 2024, through James D. Allen, Executive Vice President, Chief Financial Officer, and Treasurer.

This news article is derived from information provided in the Form 8-K filed with the U.S. Securities and Exchange Commission. Readers are encouraged to refer to the official documents for complete details regarding the transaction.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Forestar Group’s 8K filing here.

Forestar Group Company Profile

Forestar Group Inc operates as a residential lot development company in the United States. The company acquires land and develops infrastructure for single-family residential communities. It sells its residential single-family finished lots to local, regional, and national homebuilders. The company was incorporated in 2005 and is headquartered in Arlington, Texas.