Beazer Homes and GSO Capital Partners Announce $150 Million Land Banking Arrangement

  Beazer Homes and GSO Capital Partners Announce $150 Million Land Banking

Business Wire

ATLANTA & NEW YORK -- March 27, 2013

Beazer Homes USA, Inc. (the “Company”) (NYSE:BZH) and GSO Capital Partners LP
("GSO"), the credit arm of The Blackstone Group (NYSE:BX), announced today
that GSO will make available up to $150 million as part of a land banking
arrangement. Funds managed by GSO will acquire new land parcels identified by
Beazer Homes and option finished lots on a pre-determined takedown schedule to
the Company.

“I’m very pleased that GSO has agreed to make available to the Company
additional capital to enhance our land acquisition and development
activities,” said Allan Merrill, CEO of Beazer Homes. “Expanding our active
community count beginning in fiscal 2014 is a key part of our
path-to-profitability plan and will enable us to more fully participate in the
strengthening housing market.”

Doug Ostrover, Senior Managing Director of Blackstone and Co-Founder of GSO,
said, "As the housing recovery continues to gain momentum, we are excited to
partner with Beazer and extend our land banking business. GSO has a long
history of working with Beazer, and we have great confidence that the
management team is positioning the company well in order to capitalize on the
recovery and regain profitability. We look at this incremental capital as just
the first step in what we hope to be many successful future ventures with


Headquartered in Atlanta, Beazer Homes is one of the country’s 10 largest
single-family homebuilders. The Company’s homes meet or exceed the benchmark
for energy-efficient home construction as established by ENERGY STAR® and are
designed with flexible floorplan options to meet the personal preferences and
lifestyles of its buyers. In addition, the Company is committed to providing a
range of preferred lender choices to facilitate transparent competition
between lenders and enhanced customer service. The Company offers homes in 16
states, including Arizona, California, Delaware, Florida, Georgia, Indiana,
Maryland, Nevada, New Jersey, New York, North Carolina, Pennsylvania, South
Carolina, Tennessee, Texas and Virginia. Beazer Homes is listed on the New
York Stock Exchange under the ticker symbol “BZH.” For more info visit, or check out Beazer on Facebook and Twitter.


GSO Capital Partners LP is the global credit platform of The Blackstone Group
L.P. (NYSE:BX). GSO, together with its affiliates, has approximately $55
billion of assets currently under management and is one of the largest
credit-oriented alternative managers in the world and a major participant in
the leveraged finance marketplace. GSO seeks to generate superior
risk-adjusted returns in its credit business by investing in a broad array of
strategies including mezzanine, distressed investing leveraged loans and other
special situation strategies.

This press release contains forward-looking statements. These forward-looking
statements represent our expectations or beliefs concerning future events, and
it is possible that the results described in this press release will not be
achieved. These forward-looking statements are subject to risks, uncertainties
and other factors, many of which are outside of our control, that could cause
actual results to differ materially from the results discussed in the
forward-looking statements, including, among other things, (i) economic
changes nationally or in local markets, including changes in consumer
confidence, changes in the level of housing starts, declines in employment
levels, inflation and changes in the demand and prices of new homes and resale
homes in the market; (ii) a slower economic rebound than anticipated, coupled
with persistently high unemployment and additional foreclosures; (iii)
estimates related to homes to be delivered in the future (backlog) are
imprecise as they are subject to various cancellation risks which cannot be
fully controlled; (iv) a substantial increase in mortgage interest rates,
increased disruption in the availability of mortgage financing or a change in
tax laws regarding the deductibility of mortgage interest; (v) factors
affecting margins such as decreased land values underlying lot option
agreements, increased land development costs on communities under development
or delays or difficulties in implementing initiatives to reduce production and
overhead cost structure; (vi) our cost of and ability to access capital and
otherwise meet our ongoing liquidity needs including the impact of any
downgrades of our credit ratings or reductions in our tangible net worth or
liquidity levels; (vii) our ability to comply with covenants in our debt
agreements or satisfy such obligations through repayment or refinancing;
(viii) increased competition or delays in reacting to changing consumer
preference in home design; (ix) shortages of or increased prices for labor,
land or raw materials used in housing production; (x) additional asset
impairment charges or writedowns; (xi) the cost and availability of insurance
and surety bonds; (xii) delays in land development or home construction
resulting from adverse weather conditions; (xiii) potential delays or
increased costs in obtaining necessary permits and possible penalties for
failure to comply with laws, regulations and governmental policies; (xiv)
effects of changes in accounting policies, standards, guidelines or
principles; or (xv) terrorist acts, acts of war and other factors over which
the Company has little or no control. Under the terms of the land banking
arrangement, GSO retains the right to approve the terms of each land parcel
acquisition. Accordingly, there can be no assurance that all or any portion of
the $150 million described herein will be funded.

Any forward-looking statement speaks only as of the date on which such
statement is made, and, except as required by law, we do not undertake any
obligation to update or revise any forward-looking statement, whether as a
result of new information, future events or otherwise. New factors emerge from
time to time and it is not possible for management to predict all such


Beazer Homes USA, Inc.
Carey Phelps, 770-829-3700
Director, Investor Relations & Corporate Communications
Peter Rose, 212-583-5871
Senior Managing Director, Global Public Affairs
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