BLOOMFIELD HILLS, Mich., Aug. 24, 2011 /PRNewswire via COMTEX/ --
PulteGroup, Inc. (NYSE: PHM) provided the following comment on the Form 4 filings by Company Founder and former Chairman William J. Pulte:
Mr. Pulte recently filed Form 4's with the Securities and Exchange Commission for transactions covering approximately 13 million shares of PulteGroup stock through prepaid variable forward contracts. These shares represent approximately 3% of the Company's shares outstanding and 31% of shares controlled by Mr. Pulte. The proceeds from these contracts were used to pay down personal loans previously established by Mr. Pulte in which he had used a portion of his PulteGroup stock as the primary collateral.
Given the structure of the forward contract, Mr. Pulte currently retains his ownership over approximately 11% of the Company's common shares and maintains all applicable voting rights.
The prepaid variable forward contracts also allow Mr. Pulte to receive cash now while giving him the right to retain ownership of these shares at the end of their respective terms by settling the contracts with cash instead of delivering the shares.
Mr. Pulte is not an employee of the Company nor a member of its Board of Directors, so he is not restricted by PulteGroup's current prohibition on the use of such forward contracts, although he was required to file the Form 4's due to his ownership position.
PulteGroup, Inc. (NYSE: PHM) based in Bloomfield Hills, Mich., is America's premier home building company with operations in 60 markets throughout 29 states. The Company has an unmatched capacity to meet the needs of multiple buyer segments through its brand portfolio that includes Pulte Homes, Centex and Del Webb. As the most awarded homebuilder in customer satisfaction, the brands of PulteGroup have consistently ranked among the nation's top homebuilders as surveyed by third-party, independent national customer satisfaction studies.
SOURCE PulteGroup, Inc.