Shea Homes gets 8 5/8% noteholder consent for $125 million revolver

By Susanna Moon

Chicago, Nov. 1 - Shea Homes LP and Shea Homes Funding Corp. said they collected enough consents to amend their 8 5/8% senior secured notes due 2019.

The issuers obtained consents from holders of at least a majority of the outstanding notes, and the proposed amendments were approved, according to a company press release.

The amendments will allow the issuers to replace their $75 million letter-of-credit facility with a $125 million revolving credit facility, as previously announced.

The solicitation ended at 5 p.m. ET on Oct. 31. The solicitation began Oct. 22. Holders needed to be of record as of 5 p.m. ET on Oct. 21.

The consent fee will be $2.50 per $1,000 principal amount.

If the required consents were received and the proposed amendments became effective, the company previously said it would begin holding quarterly conference calls with holders of the notes, beginning with the release of its quarterly earnings for the quarter ending June 30, 2014.

Also, if the required consents were received and the proposed amendments became effective, J.F Shea Co., Inc. would repay the note receivable owed to Shea Homes LP by at least $8 million no later than Jan. 31, 2014, the previous press release added.

Credit Suisse Securities (USA) LLC (800 820-1653 or 212 325-2476 collect) is the solicitation agent. D.F. King & Co., Inc. is the information and tabulation agent (212 269-5550 collect or 800 628-8536).

Shea is a Walnut, Calif.-based homebuilder.

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