New Issue: William Lyon Homes $250 million 10-year notes yield 11%

By Paul A. Harris

St. Louis, March 12 - William Lyon Homes, Inc. priced $250 million of 10¾% senior notes due April 1, 2013 (B3/B-) at 98.493 on Wednesday to yield 11%, according to a syndicate source.

Price talk was for a yield in the 10¾% area.

The underwriters were bookrunner UBS Warburg with joint lead manager Salomon Smith Barney.

Proceeds from the public offering will be used to repay debt including the $71 million of 12½% notes due 2003 issued by The Presley Companies.

The issuer is a Newport Beach, Calif. homebuilder.

Issuer:	William Lyon Homes, Inc.
Amount:	$250 million
Maturity:	April 1, 2013
Security description:	Senior notes
Managers:	UBS Warburg (books), Salomon Smith Barney
Coupon:	10¾%
Price:	98.493
Yield:	11%
Spread:	741 basis points
Call features:	Callable on April 1, 2008 at 105.375, then at 103.583, 101.792, declining to par on April 1, 2011 and thereafter
Equity clawback:	Until April 1, 2005 for 35% at 110.75
Settlement date:	March 17, 2003 (T+3)
Distribution:	Public
Ratings:	Moody's: B3
	Standard & Poor's: B-
Cusip:	552075AA1
Price talk:	10¾% area

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