Up 171.3%, BHS Declares Special $9 Dividend
04/03/2004
Up 171.3% after we recommended the company in April of 2003,
Brookfield Homes (BHS) announced a special dividend of $9
per share. The company's news release follows:
Del Mar, California, April 1, 2004 — (BHS:
NYSE)
Special Dividend — Brookfield
Homes today announced that its Board of Directors declared
a special dividend of $9 per common share (less any applicable
withholding tax), payable $4.50 in cash and $4.50 in principal
amount of the Company’s 12% senior subordinated notes due
2020 (the “subordinated notes”). The subordinated notes will
be issued in denominations of $1,000 and integral multiples
thereof. Fractional interests in the subordinated notes will
be paid in cash in lieu of notes. Subject to receipt by the
Company of all applicable regulatory approvals, the distribution
will be made on April 30, 2004 to shareholders of record at
the close of business on April 16, 2004. In declaring the
special dividend, the Board considered the Company’s strong
operating results and the cash received from bulk lot sales
during 2003. Subsequent to the payment of the approximately
$139 million cash portion of the special dividend, the Company
expects to have available approximately $70 million of cash
and cash equivalents.
The subordinated notes totaling approximately
$139 million will be due June 30, 2020, and will be unsecured
and subordinated to all project specific and other financings
of the Company. The subordinated notes will be redeemable
by the Company at par at any time. We expect that any such
redemption would be funded out of the Company’s cash flow.
The Company has applied to list the subordinated notes on
the New York Stock Exchange under the symbol “BHS20”.
For further information regarding the special
dividend, please refer to the Company’s “Questions and Answers
Regarding the Special Dividend” which will be posted under
the Investor Relations section of Brookfield Homes’ website
at www.brookfieldhomes.com.
Brookfield Homes Corporation
Brookfield Homes Corporation is a residential homebuilder
and land developer, building homes and developing land in
master-planned communities and infill locations. We design,
construct and market single-family and multi-family homes
primarily to move-up and luxury homebuyers. We also develop
land for our own communities and sell lots to other homebuilders.
Our portfolio includes over 20,000 lots owned and controlled
in the San Francisco Bay Area; Southland / Los Angeles; San
Diego / Riverside; Sacramento and Northern Virginia markets.
For more information, visit the Brookfield Homes website at
www.brookfieldhomes.com.
Contact Information:
Linda Northwood
Director, Investor Relations Tel: 858-481-2567 Email: lnorthwood@brookfieldhomes.com
* * * * * * * * * * * * *
Note: Certain statements in this press release
that are not historical facts, including information concerning
the expected special dividend payment, sources of funds for
redemption, expected cash position and those statements preceded
by, followed by, or that include the words “planned”, “should”,
“goals”, “expected”, “targeted,” “scheduled” or similar expressions,
constitute “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995. Undue
reliance should not be placed on forward-looking statements
because they involve known and unknown risks, uncertainties
and other factors, which may cause the actual results to differ
materially from the anticipated future results expressed or
implied by such forward-looking statements. Factors that could
cause actual results to differ materially from those set forward
in the forward-looking statements include, but are not limited
to: changes in general economic, real estate and other conditions;
mortgage rate changes; availability of suitable undeveloped
land at acceptable prices; adverse legislation or regulation;
ability to obtain necessary permits and approvals for the
development of our land; availability of labor or materials
or increases in their costs; ability to develop and market
our master-planned communities successfully; confidence levels
of consumers; ability to raise capital on favorable terms;
adverse weather conditions and natural disasters; relations
with the residents of our communities; risks associated with
increased insurance costs or unavailability of adequate coverage
and ability to obtain surety bonds; competitive conditions
in the homebuilding industry, including product and pricing
pressures; and additional risks and uncertainties referred
to in our Form 10-K and other SEC filings, many of which are
beyond our control. We undertake no obligation to publicly
update any forward-looking statements, whether as a result
of new information, future events or otherwise.
Source: Brookfield Homes Corporation
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