Five Point launches tender offer for 10.5% senior notes due 2028

IRVINE, Calif. - Five Point Holdings, LLC (NYSE:FPH), a real estate developer with a market capitalization of $889 million and strong financial health according to InvestingPro analysis, announced Monday that its subsidiaries have commenced a cash tender offer to purchase any and all of their outstanding 10.500% Initial Rate Senior Notes due 2028.

The offer, made by Five Point Operating Company, LP and Five Point Capital Corp., is scheduled to expire at 5:00 p.m. New York City time on September 19, 2025, unless extended or terminated earlier. The company maintains a healthy balance sheet with liquid assets significantly exceeding short-term obligations and operates with a moderate debt-to-equity ratio of 0.77.

The purchase price will be determined based on a fixed spread of zero basis points plus the yield of the 4.500% U.S. Treasury Note due November 15, 2025. The price calculation assumes redemption of the notes on November 15, 2025, at the specified redemption price of 100.000% of principal amount.

Holders whose notes are purchased will also receive accrued and unpaid interest up to, but not including, the expected payment date of September 25, 2025.

The tender offer is contingent upon the Offerors securing a binding commitment with initial purchasers to issue and sell senior notes yielding at least $450 million in gross proceeds. The company plans to finance the purchase using proceeds from this contemporaneous senior notes offering and cash on hand.

For any notes that remain outstanding after the tender offer, Five Point intends to either issue a redemption notice, satisfy and discharge its obligations, or pursue a combination of these options.

The $523,494,000 in outstanding notes are callable at 100.000% of principal amount plus accrued interest starting on November 15, 2025.

Five Point has appointed J.P. Morgan Securities LLC as the exclusive dealer manager and D.F. King & Co., Inc. as the tender agent and information agent for the offer.

Based in Irvine, California, Five Point designs and develops large mixed-use planned communities in Orange County, Los Angeles County, and San Francisco County.

This article is based on a press release statement from the company.

In other recent news, Five Point Holdings LLC reported its second-quarter 2025 earnings, with a net income of $8.6 million. Despite the positive earnings report, the company’s stock experienced a decline in both regular and aftermarket trading. Five Point Holdings highlighted strategic initiatives and challenges during its earnings call, focusing on navigating a fluctuating market environment. In a separate announcement, Five Point Holdings disclosed plans to offer $450 million in senior notes due in 2030, aimed at refinancing existing debt. These notes will be guaranteed by Five Point Operating Company’s existing and future domestic subsidiaries, with certain exceptions. The parent company, Five Point Holdings, will not provide a guarantee for these notes. These developments reflect the company’s ongoing efforts to manage its financial structure and address market dynamics.

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