topstockalerts
Oct 20, 9:03 PM
S&P Global Ratings downgraded Dream Finders Homes’ credit rating from BB- to B+ following its
$2.2 billion all-cash acquisition of Beazer Homes, citing higher debt and near-term macroeconomic pressures. S&P expects leverage to remain elevated through 2028, reflecting approximately
$720 million in assumed Beazer senior and subordinated notes, alongside debt-like preferred shares issued to finance the deal. Dream Finders received a stable outlook, while Beazer was upgraded to B+ before its ratings were withdrawn.
The acquisition transforms Dream Finders into a larger homebuilder with approximately
$6.2 billion in pro forma annual revenue, operations across 26 of the 50 largest U.S. metropolitan areas, and annual delivery capacity of roughly 14,500 homes. S&P expects higher home deliveries and cost synergies to help reduce leverage over the next two years.
To support the transaction, Dream Finders secured
$800 million in land-financing capital from Millrose.
$DFH $BZH
