Beazer gets another default notice, this time on 4 5/8% convertibles

By Caroline Salls

Pittsburgh, Sept. 10 - Beazer Homes USA, Inc. received a notice of default on its 4 5/8% convertible senior notes due 2024 for failure to file its 10-Q for the quarter ended June 30, according to a company news release.

The company has 60 days to cure the default.

Beazer said it does not believe that it is in default under the notes indenture because the indenture does not contain an express financial reporting covenant requiring the company to file periodic reports with the Securities and Exchange Commission or deliver copies to the trustee within any prescribed time period.

In response to this latest default notice, Beazer said it amended its lawsuit against the indenture trustees for its various notes to include the convertibles.

As previously reported, Beazer is seeking a declaration from the court that the filing delay does not constitute a default under the applicable notes indentures and that the delay should not prompt an acceleration of its senior notes.

The company is awaiting the outcome of a board of directors' audit committee independent internal investigation before it files the 10-Q in question.

Beazer is an Atlanta-based homebuilder.

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