Home Financial News Review: American Homes 4 Rent (NYSE:AMH)

News Review: American Homes 4 Rent (NYSE:AMH)


On Thursday, Shares of American Homes 4 Rent (NYSE:AMH), added 0.08% and closed at $23.62 in the last trading session. The last trading range of the stock ranges between $23.45 and $23.75.

American Homes 4 Rent (AMH) (the “Company”) recently declared that it has priced its formerly declared underwritten public offering of 6,000,000 of its 5.875% Series F Cumulative Redeemable Perpetual Preferred Shares (the “Series F Preferred Shares”) raising gross proceeds of about $150 million, before deducting underwriting discounts and commissions and estimated offering expenses. The Series F Preferred Shares have an initial liquidation preference of $25 per share. The offering is expected to close on April 24, 2017, subject to customary closing conditions. The Company also has granted to the underwriters a 30-day option to purchase up to an additional 900,000 Series F Preferred Shares at the public offering price, less the underwriting discount. The Company intends to apply to list the Series F Preferred Shares on the New York Stock Exchange under the symbol “AMHPRF.” If the application is approved, the Company anticipates trading to begin 30 days after initial delivery of the Series F Preferred Shares.

The Company will contribute the net proceeds from the offering to its operating partnership in exchange for Series F operating partnership units. The operating partnership intends to use the net proceeds from the contribution to repay indebtedness under its revolving credit facility and term loan facility.

Raymond James & Associates, Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC are acting as joint book-running managers for the offering, and Goldman, Sachs & Co., Jefferies LLC, J.P. Morgan Securities LLC and U.S. Bancorp Investment, Inc. are acting as co-managers for the offering.

Analyst recommendation for this stock stands at 2.20.