Five Point prices tender offer for 10.500% senior notes due 2028

IRVINE, Calif. - Five Point Holdings, LLC (NYSE:FPH), which has seen its stock surge over 90% in the past year according to InvestingPro data, announced Friday the pricing terms for its cash tender offer to purchase any and all of its outstanding 10.500% Initial Rate Senior Notes due 2028.

The purchase price was set at $1,008.57 per $1,000 principal amount of notes validly tendered and not withdrawn. The pricing was determined by reference to the 4.500% U.S. Treasury security due November 15, 2025, with a reference yield of 4.140%.

The tender offer, which expires at 5:00 p.m. New York City time on Friday, targets $523.5 million in outstanding notes co-issued by Five Point Operating Company, LP and Five Point Capital Corp.

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

Five Point plans to fund the purchase using proceeds from a contemporaneous senior notes offering and cash on hand. The company’s strong financial position, with liquid assets significantly exceeding short-term obligations, supports this move. For any notes not tendered, the company intends to issue a redemption notice to redeem remaining notes before or on November 15, 2025, or satisfy and discharge its obligations under the notes. According to InvestingPro analysis, the company maintains a moderate debt level with a debt-to-equity ratio of 0.77.

J.P. Morgan Securities LLC is serving as the exclusive dealer manager for the offer, with D.F. King & Co., Inc. acting as the tender agent and information agent.

Five Point Holdings designs and develops large mixed-use planned communities in California, including projects in Orange County, Los Angeles County, and San Francisco County. The company’s communities are designed to include approximately 40,000 residential homes and 23 million square feet of commercial space.

The announcement was made in a press release statement issued by the company.

In other recent news, Five Point Holdings reported a net income of $8.6 million for the second quarter of 2025. The company is also planning to offer $450 million in senior notes due 2030, which will be used to refinance existing debt. Moody’s Ratings has upgraded Five Point’s corporate family rating to B2 from B3 and assigned a B2 rating to the new senior unsecured notes due 2030. Additionally, Five Point has launched a cash tender offer to purchase all outstanding 10.5% Initial Rate Senior Notes due 2028. The offer is set to expire on September 19, 2025, unless extended or terminated earlier. These developments follow strategic initiatives discussed during the company’s recent earnings call. The earnings call also touched on challenges faced by Five Point in a fluctuating market environment.

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