XML 24 R12.htm IDEA: XBRL DOCUMENT v3.26.1
Borrowings
 9 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Borrowings Borrowings
The Company's debt, net of unamortized debt issuance costs consisted of the following as of June 30, 2026 and September 30, 2025:
in thousandsMaturity DateJune 30, 2026September 30, 2025
5.875% Senior Notes (2027 Notes)
October 2027$— $357,255 
7.250% Senior Notes (2029 Notes)
October 2029350,000 350,000 
7.500% Senior Notes (2031 Notes)
March 2031250,000 250,000 
8.000% Senior Notes (2032 Notes)
January 2032400,000 — 
Unamortized debt issuance costs(10,888)(6,611)
Total Senior Notes, net989,112 950,644 
Junior Subordinated Notes (net of unamortized accretion of $20,753 and $22,303, respectively)
July 203680,020 78,470 
Senior Unsecured Revolving Credit FacilityMarch 2030340,000 — 
Total debt, net$1,409,132 $1,029,114 
Senior Unsecured Revolving Credit Facility
The Senior Unsecured Revolving Credit Facility (Unsecured Facility) provides working capital and letter of credit capacity. In March 2026, the Company executed an amendment to increase its available borrowing capacity under the Unsecured Facility from $365.0 million to $525.0 million. The $525.0 million borrowing capacity includes a letter of credit facility of up to $100.0 million. The Company will have the right from time to time to request to increase the size of the commitments under the Unsecured Facility by up to $100.0 million for a maximum of $625.0 million. The Company also extended the termination date (Termination Date) from March 15, 2028 to March 13, 2030. The Company may borrow, repay, and reborrow amounts under the Unsecured Facility until the Termination Date.
Borrowings under the Unsecured Facility bear interest, at our option, at either (i) a secured overnight financing rate (SOFR) plus an applicable margin ranging from 2.15% to 2.90% per annum or (ii) an alternate base rate (ABR) plus an applicable margin ranging from 1.15% to 1.90% per annum. Commitment fees on the unused portion of the facility range from 0.25% to 0.40% per annum. The applicable margin and the commitment fees vary based on the Company's leverage ratio, as defined under the Unsecured Facility.
Substantially all of the Company's significant subsidiaries are full and unconditional guarantors of the Unsecured Facility and are jointly and severally liable for obligations under the Unsecured Facility. For additional discussion of the Unsecured Facility, refer to Note 7 to the consolidated financial statements within our 2025 Annual Report.
As of June 30, 2026, we had $340.0 million in borrowings and $45.8 million in letters of credit outstanding under the Unsecured Facility, resulting in a remaining capacity of $139.2 million. The weighted-average interest rate on outstanding borrowings as of June 30, 2026 was 6.97%. The Unsecured Facility requires compliance with certain covenants, including affirmative covenants, negative covenants and financial covenants. As of June 30, 2026, the Company believes it was in compliance with all such covenants.
Senior Notes
The Company's senior notes (Senior Notes) are unsecured obligations that rank equally in right of payment with all existing and future senior unsecured obligations, senior to all of the Company's existing and future subordinated indebtedness, and effectively subordinated to the Company's future secured indebtedness, to the extent of the value of the assets securing such indebtedness. Substantially all of the Company's significant subsidiaries are full and unconditional guarantors of the Senior Notes and are jointly and severally liable for obligations under the Senior Notes. Each guarantor subsidiary is a wholly owned subsidiary of Beazer Homes. The Senior Notes and related guarantees are structurally subordinated to all indebtedness and other liabilities of all of the Company's subsidiaries that do not guarantee these notes.
The Company's Senior Notes are issued under indentures that contain certain restrictive covenants which, among other things, restrict our ability to pay dividends, repurchase our common stock, incur certain types of additional indebtedness, and make certain investments. Compliance with the Senior Note covenants does not significantly impact the Company's operations. The Company believes it was in compliance with the covenants contained in the indentures of all of its Senior Notes as of June 30, 2026.
In June 2026, we issued and sold $400.0 million aggregate principal amount of the 2032 Notes at par (before underwriting and other issuance costs) through a private placement to qualified institutional buyers. Interest on the 2032 Notes is payable semiannually, beginning in January 2027. The 2032 Notes will mature in January 2032. The covenants related to the 2032 Notes are substantially consistent with our other Senior Notes.
During the three months ended June 30, 2026, we redeemed the remaining $357.3 million of our outstanding 2027 Notes using proceeds from the issuance of the 2032 Notes, resulting in a loss on extinguishment of debt of $0.7 million. The Company has terminated, cancelled, and discharged all of its obligations under the 2027 Notes as of June 30, 2026. No debt repurchases were made during the three and nine months ended June 30, 2025.
For additional redemption features, refer to the table below that summarizes the redemption terms of our Senior Notes:
Senior Note DescriptionIssuance DateMaturity DateRedemption Terms
7.250% Senior Notes
September 2019October 2029
Callable at any time prior to October 15, 2024, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after October 15, 2024, callable at a redemption price equal to 103.625% of the principal amount; on or after October 15, 2025, callable at a redemption price equal to 102.417% of the principal amount; on or after October 15, 2026, callable at a redemption price equal to 101.208% of the principal amount; on or after October 15, 2027, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest.
7.500% Senior Notes
March 2024March 2031
On or prior to March 15, 2027, we may redeem up to 35% of the aggregate principal amount of the 2031 Notes with the net cash proceeds of certain equity offerings at a redemption price equal to 107.500% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date, provided at least 65% of the aggregate principal amount of the 2031 Notes originally issued remains outstanding immediately after such redemption.
Callable at any time prior to March 15, 2027, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after March 15, 2027, callable at a redemption price equal to 103.750% of the principal amount; on or after March 15, 2028, callable at a redemption price equal to 101.875% of the principal amount; on or after March 15, 2029, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest.
8.000% Senior Notes
June 2026January 2032
On or prior to July 15, 2028, we may redeem up to 35% of the aggregate principal amount of the 2032 Notes with the net cash proceeds of certain equity offerings at a redemption price equal to 108.000% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date, provided at least 65% of the aggregate principal amount of the 2032 Notes originally issued remains outstanding immediately after such redemption.
Callable at any time prior to July 15, 2028, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after July 15, 2028, callable at a redemption price equal to 104.000% of the principal amount; on or after July 15, 2029, callable at a redemption price equal to 102.000% of the principal amount; on or after July 15, 2030, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest.
Junior Subordinated Notes
The Company's unsecured junior subordinated notes (Junior Subordinated Notes) mature on July 30, 2036 and have an aggregate principal balance of $100.8 million as of June 30, 2026. The securities have a floating interest rate as defined in the Junior Subordinated Notes Indentures, which was a weighted-average of 6.38% as of June 30, 2026. The obligations relating to these notes are subordinated to the Unsecured Facility and the Senior Notes. In January 2010, the Company restructured $75.0 million of these notes (Restructured Notes) and recorded them at their then estimated fair value. Over the remaining life of the Restructured Notes, we will increase their carrying value until this carrying value equals the face value of the notes. As of June 30, 2026, the unamortized accretion was $20.8 million and will be amortized over the remaining life of the Restructured Notes. The remaining $25.8 million of the Junior Subordinated Notes are subject to the terms of the original agreement, have a floating interest rate equal to a three-month SOFR plus 2.71% per annum, resetting quarterly, and are redeemable in whole or in part at par value. The material terms of the $75.0 million Restructured Notes are identical to the terms of the original agreement except that the floating interest rate is subject to a floor of 4.25% and a cap of 9.25%. In addition, beginning on June 1, 2012, the Company has the option to redeem the $75.0 million principal balance in whole or in part at 75% of par value, and beginning on June 1, 2022, the redemption price has increased by 1.785% annually. As of June 30, 2026, the Company believes it was in compliance with all covenants under the Junior Subordinated Notes.