By Paul A. Harris
Portland, Ore., March 6 – William Lyon Homes priced a $350 million issue of 5.5-year senior notes (B2/B+) at par to yield 6% in a Tuesday drive-by, according to a market source.
The yield priced at the tight end of official price talk and initial guidance, which were both set at 6% to 6¼%.
J.P. Morgan Securities LLC was the left bookrunner.
Proceeds, together with $200 million in cash generated from certain land banking arrangements, and cash on hand, will be used to finance the acquisition of RSI Communities LLC and three additional related real estate assets, and to pay off California Lyon’s $150 million 5¾% senior notes due 2019.
The issuing entity is William Lyon Homes, Inc., a wholly owned subsidiary of the Newport Beach, Calif.-based homebuilder.
| Issuer: | William Lyons Homes, Inc.
|
| Amount: | $350 million
|
| Maturity: | Sept. 1, 2023
|
| Securities: | Senior notes
|
| Left bookrunner: | J.P. Morgan Securities LLC
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Call protection: | 2.5 years
|
| Trade date: | March 6
|
| Ratings: | Moody's: B2
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 6% to 6¼%
|
| Marketing: | Quick to market
|
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