William Lyon extends Dutch auction tender for 7 5/8%, 10¾%, 7½% notes

New York., May 8 - William Lyon Homes subsidiary William Lyon Homes, Inc. extended its Dutch auction tender offer for its $127.9 million of outstanding 7 5/8% senior notes due 2012, $213.1 million of outstanding 10¾% senior notes due 2013 and $124.1 million of outstanding 7½% senior notes due 2014, according to a company news release.

The expiration is now 11:59 p.m. ET on May 22 instead of the same time on May 7.

As of the close of business on May 7, $9.3 million principal amount of notes had been tendered.

William Lyon announced the tender on April 13 and said the maximum total payment amount for the offer is $40 million.

For each $1,000 principal amount, the acceptable bid price range is $135 to $175 for the 7 5/8% notes, $155 to $195 for the 10¾% notes and $125 to $165 for the 7½% notes.

The bid prices will include a $10 early participation payment for notes tendered by the early participation date, which is 5 p.m. ET on April 24.

Noteholders will also receive accrued interest up to but excluding the purchase date.

The purchase price paid per $1,000 principal amount of each series of notes will be determined based on a formula consisting of a base price, including the early participation payment for notes tendered by the early participation date, plus a clearing premium applicable to all three series of notes.

For each series, the issuer will determine the bid premium, or the amount by which each bid price exceeds the base price for that series.

The clearing premium will be the lowest single premium for all tenders that will allow the issuer to spend the maximum payment amount by accepting all tendered notes with bid premiums equal to or lower than the clearing premium.

If the total amount of notes tendered at or below the clearing premium would cause the issuer to spend more than the cap, then holders of notes tendered at the clearing premium will be subject to proration.

The dealer manager is Moelis & Co. LLC (call Robert Crowley at 617 341-7101 or Robert Flachs at 310 443-2326). The information agent is Global Bondholder Services Corp. (866 736-2200).

William Lyon Homes is a homebuilder based in Newport Beach, Calif.

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