American Homes 4 Rent in Agoura Hills, Calif., said Tuesday that an affiliate will launch the offering of a securitization transaction by the end of this week.
The private placement transaction involves the issuance and sale of single-family rental pass-through certificates. The securities are supported by a portion of the company's portfolio of single-family properties that are currently owned by the affiliate.
The goal of the sale is to reduce the cost of capital over the long term, American Homes 4 Rent said in a press release. It did not give the dollar amount of the planned offering.
To speed the sale American Homes 4 Rent is offering the certificates under the Securities and Exchange Commission's Rule 144A, which waives the usual requirement of a two-year holding period for privately placed securities if they are traded among qualified institutional buyers.
The certificates will not be registered under the Securities Act of 1933, "and may not be offered or sold in the United States" unless interested parties file a registration form and comply with applicable exemptions, the company explained in a press release.