Third Point LLC, the activist hedge fund headed by Daniel Loeb increased its stake in Green Brick Partners based on its 13D filing with the Securities and Exchange Commission (SEC).
Third Point investment details
Based on the filing, Third Point beneficially owns 8,083,022 shares or 16.7% of the outstanding common stock of Green Brick Partners. The activist hedge fund previously owned 5,242,124 shares as of the first quarter of 2015.
Mr. Loeb beneficially owns 8,182,965 total shares, which include 99,943 shares (sole voting power and dispositive power) and 8,083,022 shares (shared voting and dispositive power) of Green Brick Partners. The total shares represent 16.9%.
Third Point Partners LP beneficially owns 2,690,647 shares or 5.6% and Third Point Partners Qualified LP beneficially owns 1,705,143 shares or 3.5% of Green Brick Partners.
According to the activist hedge fund, the amount of the shares it acquired during the company’s Rights Offering was $28,408,980.
Green Bricks Partners public offering
Green Bricks Partners completed the underwritten public offering of 17 million shares of its common stock on July 1. The company offered its stock for $10 per share.
The company said its net proceeds from the offering were $165.6 million. Green Brick Partners used $154.9 million of the net proceeds to repay its outstanding debt under its term loan facility with the affiliates of Greenlight Capital.
Following the receipt of its payment, all security interests and all liens held by Greenlight Capital on the company’s assets securing the amounts owed under the term loan facility would be terminated.
Green Brick Partners plans to use the remaining amount for working capital and general corporate purposes.
According to Third Point, its Funds acquired a total of 2,840,898 shares during the public offering. Third Point Partners bought 945,668 shares, and Third Point Partners Qualified purchased 599,298 shares.
The activist hedge fund indicated that it “may have engaged in, intend to continue to engage in communications with one or more of the stockholders, officers and/or members of the board of directors” regarding topics such as the operations of Green Brick Partners.
The stock price of Green Brick Partners increased more than 4% to $12.06 per share at the time of this writing, around 11:34 AM in New York.
