Lennar Corp., the fourth-largest U.S. home builder, said Monday that it may sell as much as $275 million of Class A common stock.

The builder said it may use the proceeds from any sale as working capital and to repay debt.

Lennar has about $25 million of debt that will mature this year and $300 million that will mature next year, according to data compiled by Bloomberg.

The proceeds may also be used for acquisitions, the company said. It has a nonbinding offer to buy Landsource Communities LLC, a bankrupt developer owned by government retirees in California.

Lennar also said Monday that its insurance should cover the costs of replacing gas-emitting drywall installed in homes it built in 2005 and 2006.

The company has begun to identify which homes contain the "defective" Chinese-manufactured drywall, which emits sulfur gases.

Lennar, a defendant in a drywall-related class action filed last month in the U.S. District Court for the Southern District of Florida, said it has not been served with court papers.

The company also said it has set aside funds to cover replacement costs not paid by insurance.

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