William Lyon Homes to price $300 million notes in two parts Thursday

By Paul A. Harris

Portland, Ore., July 30 – William Lyon Homes Inc. plans to price $300 million of notes (B3/B-) on Thursday, according to a market source.

The deal includes a $250 million tranche of new eight-year senior notes, which come with two years of call protection. The issuing entity will be William Lyon Homes Escrow Subsidiary, which will be merged with and into California Lyon upon completion of the Polygon Northwest Homes (Polygon) acquisition.

In addition, subsidiary William Lyon Homes Inc. is offering a $50 million add-on to its 5¾% senior notes due April 15, 2019. Those notes become callable on April 15, 2016 at 104.313. The original $150 million issue priced at par on March 26, 2014.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC are leading the Rule 144A and Regulation S deal.

The Newport Beach, Calif.-based homebuilder plans to use the proceeds to finance a portion of the Polygon acquisition.

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