Dream Finders Homes (DFH) has entered into subscription agreements with institutional investors to sell up to $675 million of newly-created Series B Convertible Preferred Stock. The financing is structured in two parts, with an initial closing of $225 million and a second, contingent closing of $450 million tied to the company's pending acquisition of Beazer Homes USA, Inc.
Key Details
- Initial Closing: On September 14, 2026, the company closed the sale of 225,000 shares for an aggregate purchase price of $225.0 million. Proceeds were used to redeem all outstanding Series A Convertible Preferred Stock for approximately $154.3 million, with the remainder for general corporate purposes.
- Contingent Closing: DFH has an agreement to sell an additional 450,000 shares for $450.0 million. This second closing is contingent upon the consummation of the previously announced merger with Beazer Homes and will be used to fund a portion of the merger consideration.
- Terms of Series B Stock: The preferred stock carries a 12.00% cumulative annual dividend. The company has the option to redeem the shares after three years at a premium. Investors have the right to convert their shares into Class A common stock after six years at a 20% discount to the 90-day average stock price, subject to a floor price of $4.19.