American Homes 4 Rent Announces Pricing of Initial Public Offering

AGOURA HILLS, Calif., July 31, 2013 /PRNewswire/ -- American Homes 4 Rent (the "Company," "we," or "our") today announced it has priced its initial public offering of 44,117,647 Class A common shares of beneficial interest, $0.01 par value per share, at $16.00 per Class A common share, for total gross proceeds of approximately $705.9 million. 

The shares are expected to begin trading on the New York Stock Exchange on August 1, 2013 under the symbol "AMH." The offering is expected to close on August 6, 2013, subject to satisfaction of customary closing conditions.  The Company has granted the underwriters a 30-day option to purchase up to an additional 6,617,647 Class A common shares at the initial public offering price, less underwriting discounts and commissions.   All of the shares are being offered by the Company.

Concurrently with the closing of the offering, American Homes 4 Rent, LLC, a company formed by our founder and board chairman B. Wayne Hughes, will purchase $50 million of our Class A common shares and the Alaska Permanent Fund Corporation will purchase $25 million of our Class A common shares in private placements at the initial public offering price, without payment by the Company of any underwriting discounts or placement fees.  These concurrent private placements also are expected to close on August 6, 2013 and are contingent upon completion of the offering.

The Company expects to receive total net proceeds from the initial public offering and the concurrent private placements of approximately $743.9 million, after deducting underwriting discounts, commissions and estimated offering expenses, prior to any exercise of the underwriters' option to purchase additional shares.  The Company will contribute the net proceeds of the offering and the concurrent private placements to its operating partnership. The operating partnership intends to use the net proceeds to repay borrowings under its credit facility, to continue to acquire and renovate single-family properties and for general business purposes.  

Goldman, Sachs & Co., BofA Merrill Lynch, FBR, J.P. Morgan, Wells Fargo Securities, Citigroup, Credit Suisse, Jefferies, Morgan Stanley and Raymond James are acting as joint book-running managers for the offering.  Hogan Lovells US LLP is serving as legal counsel for the Company.  Latham & Watkins LLP is serving as legal counsel to the underwriters.

A registration statement relating to these securities was declared effective by the Securities and Exchange Commission on July 31, 2013. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful before registration or qualification thereof under the securities laws of any such state or jurisdiction.

The offering is being made only by means of a prospectus.  Copies of the final prospectus relating to the offering can be obtained, when available, from Goldman, Sachs & Co., Attention: Prospectus Department, 200 West Street, New York, New York 10282, telephone: 1-866-471-2526 or e-mail: [email protected]; BofA Merrill Lynch at 222 Broadway, New York, New York 10038, Attention:  Prospectus Department, or e-mail: [email protected]; FBR Capital Markets & Co., Attention: Syndicate Prospectus Department, 1001 Nineteenth Street North, Arlington, Virginia 22209, telephone: 1-703-312-9500 or e-mail: [email protected]; J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, telephone: 1-866-803-9204; or Wells Fargo Securities, Attention: Equity Syndicate Dept., 375 Park Avenue, New York, New York 10152, telephone: 1-800-326-5897 or e-mail: [email protected].

Forward-Looking Statements

This press release contains "forward-looking statements." These forward -looking statements relate to beliefs, expectations or intentions and similar statements concerning matters that are not of historical fact and are generally accompanied by words such as "estimate," "project," "predict," "believe," "expect," "anticipate," "intend," "anticipate," "potential," "plan," "goal" or other words that convey the uncertainty of future events or outcomes. These forward-looking statements may include, but are not limited to, expectations concerning the commencement of trading of the Company's Class A common shares on the New York Stock Exchange, the Company's ability to complete the offering and the concurrent private placements, the timing of the closing and the intended use of the net proceeds. The Company has based these forward-looking statements on its current expectations and assumptions about future events. While the Company's management considers these expectations to be reasonable, they are inherently subject to risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond the Company's control. Investors should not place undue reliance on these forward-looking statements. 

Contact: Peter J. Nelson, American Homes 4 Rent
Tel: (310) 774-5394

SOURCE American Homes 4 Rent

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