William Lyon Homes obtains $100 million revolving facility due 2016

By Marisa Wong

Madison, Wis., Aug. 8 - William Lyon Homes, Inc. entered into a credit agreement providing for an up to $100 million revolving credit facility due Aug. 5, 2016, according to an 8-K filing with the Securities and Exchange Commission.

The facility was arranged by administrative agent Credit Suisse AG.

The revolver has an uncommitted accordion feature that could increase the total principal amount to up to $125 million, as well as a $50 million sublimit for letters of credit.

Interest is equal to Libor plus an applicable spread. Pricing was not disclosed in the 8-K filed Thursday.

The commitment fee on the unused portion of the facility is currently 50 basis points.

The facility contains various covenants, including financial covenants relating to tangible net worth, leverage, liquidity and interest coverage.

Borrowings, the availability of which is subject to a borrowing base formula, may be used for general corporate purposes.

The Newport Beach, Calif.-based homebuilder entered into the credit agreement on Aug. 7. The facility was undrawn at closing.

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