Taylor Morrison posts results of offers to exchange William Lyon notes

By Wendy Van Sickle

Columbus, Ohio, Feb. 6 – Taylor Morrison Communities, Inc. announced the final results of its exchange offer for notes issued by William Lyon Homes, Inc., which expired at 12:01 a.m. ET on Feb. 6.

Taylor Morrison was offering to exchange any and all of three series of William Lyon notes for up to $1.09 billion of new notes issued by Taylor Morrison. Each series of new notes will carry the same coupon and maturity date as the relevant series of existing notes, as previously reported.

By the expiration, holders had tendered $324,004,000, or 92.57%, of the $350 million of 6% senior notes due Sept. 1, 2023 (Cusip: 96926DAU4); $428.41 million, or 98.06%, of the $436,886,000 of 5 7/8% senior notes due Jan. 31, 2025 (Cusip: 96926DAR1); and $290.4 million, or 96.8%, of the $300 million of 6 5/8% senior notes due July 15, 2027 (Cusips: 96926DAV2, U96799AJ7).

The exchange offer was initially set to expire at 12:01 a.m. ET on Jan. 6 and was previously extended to 12:01 a.m. ET on Jan. 20, to 12:01 a.m. ET on Jan. 28 and to 12:01 a.m. ET on Jan. 31.

The offer was announced on Dec. 5.

The exchange was being conducted in connection with Taylor Morrison’s acquisition of William Lyon, which closed on Thursday.

The exchange offer was running concurrently with a consent solicitation, and the amount of consents received was sufficient to pass the amendments sought by the company, according to an earlier update.

As a result, William Lyon, the guarantors of its notes and the trustee under indentures have executed supplemental indentures to effect the amendments.

The amendments will eliminate substantially all of the covenants in each indenture, including the requirement to offer to repurchase the William Lyon notes upon a change of control, and eliminate other restrictive provisions and events that may lead to an event of default.

Settlement for the exchange offers was expected to occur promptly after the expiration date.

The first interest payment on the new Taylor Morrison notes will include the accrued interest from the applicable William Lyon notes tendered in exchange.

The deadline to receive the consent payment was 5 p.m. ET on Dec. 18.

Global Bondholder Services Corp. (866 807-2200, 212 430-3774 or https://gbsc-usa.com/eligibility/taylormorrison) is the exchange and information agent.

Taylor Morrison is a Scottsdale, Ariz.-based homebuilder. William Lyon is a Newport Beach, Calif.-based homebuilder.

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