Taylor Morrison Home Corp. plans to implement a holding company reorganization, in order to simplify the homebuilder's capital and tax structure and boost its operational flexibility.
The proposed reorganization, which will be effective Oct. 26, will give rise to a new holding company that will become the new parent company of the current Taylor Morrison. The reorganization will be effected via a merger transaction among Taylor Morrison and certain of its units.
Following the reorganization, the new Taylor Morrison, which will assume the Taylor Morrison Home moniker and ticker symbol, will eliminate the minority stake in its principal unit and will retire its entire outstanding shares of class B common stock so there will only be one remaining class of common stock outstanding.
Current Taylor Morrison stockholders will automatically become stockholders of the new company on a 1-for-1 basis.
Following the completion of the reorganization, all the outstanding partnership units of TMM Holdings II LP, a principal subsidiary of Taylor Morrison, and corresponding paired shares of class B common stock of new Taylor Morrison will be swapped on a 1-for-1 basis for new Taylor Morrison class A common shares.
Taylor Morrison also recently closed its merger with AV Homes Inc.