Brookfield Homes Corp. (NASDAQ: BHS) was granted the go-ahead by the Securities and Exchange Commission for a stockholder rights offering package of up to 10 million shares of 8% convertible preferred stock through 5 p.m. April 27.

Common stockholders will receive 0.3735701 nontransferable subscription rights for each share of common stock owned on the record date, subject to adjustment as contemplated by the terms of the rights offering. As soon as practicable after the record date, the company will distribute the rights, rights certificates, and copies of the prospectus to stockholders of record on the record date.

Through the offering, each whole right will entitle the holder to purchase one share of convertible preferred stock for $25. The company hopes to net $250 million from the offering, with the proceeds going to general corporate purposes, including repayment on the credit facility of an affiliate of its largest stockholder, Brookfield Asset Management, Inc.

If stockholders do not participate in the offering to net Brookfield the $250 million, Brookfield Asset Management has stated it will exercise its full subscription rights, as well as any over-subscription rights to which it is entitled.