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United Homes Group, Inc. Announces Pricing of Secondary Public Offering of Shares of Class A Common Stock
COLUMBIA, S.C.--(BUSINESS WIRE)-- United Homes Group, Inc. (the “Company”) (NASDAQ: UHG) today announced the pricing of a secondary underwritten public
About this update from United Homes Group, Inc
[{"type":"text","content":" COLUMBIA, S.C.--(BUSINESS WIRE)--\nUnited Homes Group, Inc. (the “Company”) (NASDAQ: UHG) today announced the pricing of a secondary underwritten public offering (the “Offering”) of 7,420,057 shares of the Company’s Class A common stock (the “Offered Shares”) at a public offering price of $5.00 per share. Of the Offered Shares, 1,448,200 are being purchased by the Company’s Executive Chairman, the Company’s Interim CEO, affiliates of Kennedy Lewis Agency Partners, LLC (“Kennedy Lewis”) and certain other persons identified by management, and the remainder are being purchased by institutional investors.\n\n\nThe Offering consists entirely of shares to be issued by the Company to holders (the “Selling Stockholders”) of the Company’s convertible notes payable (the “Notes”) pursuant to a redemption of the Notes (as described below) and is expected to close on December 11, 2024, subject to the satisfaction of certain customary conditions. The underwriter will have a 30-day option to purchase up to an additional 1,113,009 shares of Class A common stock (the “Option Shares”) from the Selling Stockholders. The Company is not selling any shares in the Offering and will not receive any proceeds from the Offering.\n\n\nIn connection with the closing of the Offering, the Company will redeem the Notes in exchange for an aggregate of $70,000,000, plus accrued and unpaid interest on the total outstanding aggregate principal amount of the Notes through the settlement date of cash and 10,168,850 shares of Class A common stock (the “Exchanged Shares”), including the Offered Shares and the Option Shares. The Selling Stockholders have agreed with the Company to retain, and not sell, the Exchanged Shares that are not sold in the Offering for a period of 120 days, subject to customary exceptions. Assuming the underwriter exercises its option to purchase the Option Shares in full, the Selling Stockholders will retain an aggregate of 1,635,784 of the Exchanged Shares. The Company will finance the redemption, in part, by entering into a credit agreement with Great Southern Homes, Inc., Kennedy Lewis, as administrative agent, and the lenders party thereto (the “Lenders”), pursuant to which the Lenders will fund a $70,000,000 subordinated loan. The closings of the related refinancing transactions are also subject to the satisfaction of certain customary c...