DREAM FINDERS HOMES, INC. : Other Events (form 8-K)
January 28, 2021 at 09:45 pm
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Item 8.01 Other Events.
On January 27, 2021, Dream Finders Holdings LLC ("DFH LLC"), a subsidiary of
Dream Finders Homes, Inc. (the "Company"), redeemed all of its outstanding
Series C preferred units (the "Series C Preferred Units"). The Company is the
sole manager of DFH LLC and owns 100% of the voting membership interest in DFH
LLC. The Series C Preferred Units were redeemed at a redemption price of $26.0
million, plus accrued interest and fees of $0.2 million. Following the
redemption of all of the Series C Preferred Units, 7,143 Series B preferred
units of DFH LLC remain outstanding, in addition to the 97,830 common units of
DFH LLC owned by the Company.
Prior to the redemption, the Series C Preferred Units had the right to receive
quarterly distributions equal to the sum of (i) an 11% per annum cumulative
preferred return on any outstanding and unreturned capital contribution
attributable to the Series C Preferred Units (the "Series C Preferred Return")
and (ii) all proceeds not previously distributed to the holders of the Series C
Preferred Units from lot sales by certain of DFH LLC's joint ventures. In
addition, prior to the redemption, upon the occurrence of certain events or if
the Series C Preferred Units had not been redeemed by December 31, 2021 (which
date could have been extended by DFH LLC to June 30, 2022), each holder of the
Series C Preferred Units had the right to convert all of such holder's Series C
Preferred Units to an amount of the Company's Class A common stock equal to the
quotient obtained by dividing (x) the sum of the unpaid Series C Preferred
Return and the unreturned Series C Preferred Unit capital contribution with
respect to the Series C Preferred Units to be converted by (y) the book value
per share of the Company's common stock as of the most recent quarter end prior
to such conversion.
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Dream Finders Homes, Inc. (DFHs) is a homebuilder company. The Company builds single-family homes throughout the Southeast, Mid-Atlantic and Midwest, including Florida, Texas, North Carolina, South Carolina, Georgia, Tennessee, Colorado, and the Washington, D.C. metropolitan area, which comprises of Northern Virginia and Maryland. The Company has also expanded its operations in Charleston and Greenville, South Carolina, and Nashville, Tennessee. Through its financial services joint ventures, DFH also provides mortgage financing and title services to homebuyers. It provides financial services operations that offers title insurance primarily through DF Title, LLC, doing business as Golden Dog Title & Trust and mortgage banking solutions primarily through its mortgage banking joint venture, Jet HomeLoans, LP. The Company sells homes under the Dream Finders Homes, DF Luxury, Craft Homes, and Coventry Homes brands.
DREAM FINDERS HOMES, INC. 
