By Rebecca Melvin
New York, Nov. 18 – William Lyon Homes priced $100 million tangible equity units, or 1 million units at $100.00 each, with a distribution rate of 6.5% and an initial conversion premium of 17.5%, according to market sources.
Pricing of the registered, off-the-shelf deal came through the tight end of talk for the dividend of 7% to 7.5% and at the cheap end of 17.5% to 22.5% premium talk.
The mandatory deal has a $15 million greenshoe and was sold via joint bookrunning managers J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and Credit Suisse Securities LLC.
The notes are non-callable until maturity after three years.
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 Lyon is a Newport Beach, Calif.-based homebuilder.
| Issuer: | William Lyon Homes
|
| Issue: | Tangible equity units
|
| Amount: | $100 million
|
| Greenshoe: | $15 million
|
| Maturity: | Dec. 1, 2017
|
| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities LLC
|
| Co-manager: | Oppenheimer & Co.
|
| Distribution rate: | 6.5%
|
| Price: | Par, $100
|
| Threshold appreciation premium: | 17.5%
|
| Threshold appreciation price: | $18.01 per share
|
| Minimum settlement rate: | 4.4465 shares
|
| Maximum settlement rate: | 5.2247 shares
|
| Calls: | Non-callable
|
| Price talk: | 7%-7.5%, up 17.5%-22.5%
|
| Pricing date: | Nov. 17
|
| Settlement date: | Nov. 21
|
| Stock symbol: | NYSE: WLH
|
| Stock price: | $19.14 as of close Nov. 17
|
| Distribution: | Registered, off the shelf
|
| Market capitalization: | $594.3 million
|
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