S&P rates William Lyon notes B+

S&P said it assigned its B+ issue-level rating to William Lyon Homes Inc.'s proposed $350 million senior notes due in 2023.

The recovery rating is 2, indicating an expectation of substantial (70%-90%; rounded estimate: 70%) recovery in the event of default.

The company will use proceeds to fund the recently announced acquisition of RSI Homes and to redeem its 2019 notes.

The B corporate credit rating and stable outlook are unchanged.

“The acquisition of RSI is consistent with the company's focus to increase its exposure to the entry-level segment and further diversifies the company geographically,” the agency said in a news release.

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