UPDATE 1-Beazer announces offering, shares down

* Beazer shares down 13.5 pct

* Homebuilder index down 4.4 pct
(Adds index comparisons, updates share price)

NEW YORK, May 4 (BestGrowthStock) – Led by Beazer Homes USA Inc
(BZH.N: ), shares of homebuilders fell on Tuesday, a day after
Beazer announced an equity offering that will dilute the value
of existing shares.

Homebuilders, whose shares had rallied in recent weeks,
joined a broader sell-off triggered by fears that a financial
rescue package for Greece might not be enough to prevent a
spreading sovereign debt crisis.

Homebuilders’ shares were down 4.4 percent, according to
the Dow Jones U.S. Home Construction Index (.DJUSHB: ), while the
S&P 500 was down 2.4 percent.

Beazer’s shares were down 13.5 percent at $5.95 in late
morning trading on the New York Stock Exchange.

Beazer, the eighth-largest U.S. builder, also posted
earnings from continuing operations of 10 cents per share as
its operations improved. Revenue rose 6 percent to to $198.2
million and orders rose 49 percent to 1,673 homes.

But the Atlanta-based builder said it would sell 12.5
million shares, $300 million of senior unsecured notes and 3
million tangible equity units to repay debt.

The tangible equity units are a prepaid stock purchase
contract and a senior note due 2013.

“Although dilutive, the capital structure changes benefit
liquidity,” UBS analyst David Goldberg wrote in a client note.

Investment Research

(Reporting by Helen Chernikoff, editing by Dave Zimmerman and
Tim Dobbyn)

UPDATE 1-Beazer announces offering, shares down