Ryland amends now up to $300 million tender for 5 3/8%, 6 7/8% notes

By Jennifer Chiou

New York, April 15 - Ryland Group, Inc. announced several changes to its tender offer, which is now for up to $300 million of its $199,071,000 of 5 3/8% senior notes due 2012, $215,152,000 of 6 7/8% senior notes due 2013 and $205,552,000 of 5 3/8% senior notes due 2015.

The notes are listed in order of acceptance priority level.

Previously, the tender cap was $225 million.

Among the changes, Ryland augmented the consideration for the 5 3/8% notes due 2012 and eliminated the $200 million minimum tender condition.

The company also added a $100 million total cap for the two series of lower-priority notes.

For each $1,000 principal amount, the company is now offering $1,080.27 for the 5 3/8% notes due 2012, up from $1,045, while the payouts of $1,080 for the 6 7/8% notes and par for the 5 3/8% notes due 2015 remain unchanged.

The listed payouts include an early tender payment of $20 for the 6 7/8% notes and the 5 3/8% notes due 2015 tendered by 5 p.m. ET on April 14, the early tender date. The payout for the 5 3/8% notes due 2012 originally included the early tender payment, but with the increase, the total consideration will be unchanged for tenders prior to or following April 14.

Holders will also receive accrued interest up to but excluding the payment date.

The offer will expire at 5 p.m. ET on April 29. It began on April 1.

If more than $300 million principal amount of notes are tendered, notes will be accepted for purchase in order of acceptance priority level. If there are enough remaining funds to purchase some but not all of a series of notes, the amount of those notes purchased will be prorated.

The offer is subject to the condition that a proposed financing be completed yielding enough proceeds to fund the purchase.

J.P. Morgan Securities Inc. (800 245-8812 or 212 270-3994) is the dealer manager. Global Bondholder Services Corp. (866 470-3900 or 212 430-3774) is the information agent.

Ryland is a homebuilder and a mortgage-finance company based in Calabasas, Calif.

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