08:45 AM EST, 03/05/2025 (MT Newswires) -- Forestar Group ( FOR ) said Wednesday it is launching a cash tender offer to purchase all $400 million of its outstanding 3.850% senior notes due 2026.

The consideration payable will be based on a fixed spread of zero basis points over the 2.125% US Treasury reference security due May 15, 2025, the real estate company said.

The offer will expire on March 11, unless extended or terminated by the company.

Forestar ( FOR ) also said it also plans to sell $500 million of senior unsecured notes due 2033 in a private placement to institutional buyers.

The company intends to use the net proceeds from the offering to fund its tender offer to redeem its 2026 notes and for general corporate purposes, including to repay outstanding borrowings under its credit facility.

Shares were 3% higher in recent premarket activity.