William Lyon to price $100 million mandatory convertibles to yield 7%-7.5%, up 17.5%-22.5%

By Rebecca Melvin

New York, Nov. 17 – William Lyon Homes plans to price $100 million of mandatory convertibles, or 1 million tangible equity units at $100.00 each, that were talked to yield 7% to 7.5% with an initial conversion premium 17.5% to 22.5%, according to market sources.

The registered deal has a $15 million greenshoe and was being sold via joint bookrunning managers J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and Credit Suisse Securities LLC, with co-manager Oppenheimer & Co.

The notes are non-callable until maturity after three years.

The deal is expected to price after the market close on Wednesday.

Proceeds will be used to pay down outstanding debt under the company’s $120 million unsecured loan facility, which was borrowed to pay a portion of the purchase price for the company’s acquisition of Polygon Northwest Homes.

William Lyons is a Newport Beach, Calif.-based homebuilder.

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