WCI Communities to sell $350 million four-year senior secured PIK option notes

By Paul A. Harris

St. Louis, July 16 - WCI Communities, Inc. announced that it intends to issue $350 million of senior secured pay-in-kind option notes due 2012.

The Rule 144A with registration rights notes will be callable and will come with a change-of-control put at 101%.

The new notes will be guaranteed by all current and subsequently formed domestic subsidiaries of the company that guarantee its amended credit facilities and its existing senior subordinated notes.

Proceeds from the new notes will be used to repay the Tower Construction loan agreement and existing bank debt.

The notes were announced in a July 8 offering memorandum in which the company announced that it is offering to exchange new 16% senior secured notes due 2013 for all of its currently outstanding 4% convertible senior subordinated notes due 2023.

WCI Communities is a Bonita Springs, Fla.-based homebuilder.

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