WCI Communities 4% contingent convertible notes become convertible

By Angela McDaniels

Seattle, Dec. 14 - WCI Communities, Inc. said its $125 million principal amount of 4% contingent convertible senior subordinated notes due 2023 are now convertible.

The notes became convertible following the downgrade of WCI's ratings by Moody's Investors Service on Dec. 8. The agency downgraded the company's corporate family rating to B1 from Ba3 and the ratings on its senior subordinated notes to B3 from B1.

Upon conversion of the notes, WCI will pay a cash amount equal to the lesser of par and the cash conversion price as specified in the supplemental indenture governing the notes. In the event that the cash conversion price exceeds par, the company said it may elect to issue common stock or pay an amount of cash equal to the difference between the cash conversion price and par.

As of Wednesday, the cash conversion price per $1,000 principal amount of notes was $641.28, according to an 8-K report filed with the Securities and Exchange Commission on Dec. 8.

WCI is a Bonita Springs, Fla.-based builder of traditional and tower residences in lifestyle communities.

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