New Issue: William Lyon Homes sells $50 million more 7% notes due 2022 at 102 to yield 6.412%

By Paul A. Harris

Portland, Ore., Sept. 10 – William Lyon Homes, Inc. priced a $50 million tack-on to its 7% senior notes due Aug. 15, 2022 (B3/B-) at 102 to yield 6.412% in a quick-to-market Thursday transaction, according to an informed source.

The reoffer price came on top of price talk.

Credit Suisse Securities (USA) LLC was the bookrunner.

The Newport Beach, Calif.-based homebuilder plans to use the proceeds to pay down a portion of its revolving credit facility.

Issuer:	William Lyon Homes, Inc.
Face amount:	$50 million
Proceeds:	$51 million
Maturity:	Aug. 15, 2022
Security description:	Tack-on to 7% senior notes due Aug. 15, 2022
Bookrunner:	Credit Suisse Securities (USA) LLC
Coupon:	7%
Price:	102
Yield to worst:	6.412%
Spread:	502 bps
First call:	Aug. 15, 2017 at 103.5
Equity clawback:	35% at 107 until Aug. 15, 2017
Change-of-control put:	101%
Trade date:	Sept. 10
Settlement date:	Sept. 15 with accrued interest
Ratings:	Moody's: B3
	Standard & Poor's: B-
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	102
Marketing:	Quick to market
Original issue:	$300 million priced at par in August 2014
Fungibility:	Upon registration the tack-on notes will become fungible with the original notes
Total issue size:	$350 million

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