Shea Homes gets no more tenders for 8 5/8% notes after early deadline

By Toni Weeks

San Luis Obispo, Calif., April 6 – Shea Homes LP and Shea Homes Funding Corp. said that no additional 8 5/8% senior secured notes due 2019 were tendered after the consent deadline for the companies’ tender offer and consent solicitation for any or all of their $750 million of the notes.

As previously reported, holders had tendered $682,232,000, or 90.96%, of the outstanding notes as of 5 p.m. ET on March 20, the consent deadline.

All of the notes tendered as of the consent deadline were accepted, and settlement was made on March 23, according to a press release.

The issuers also solicited consents for some amendments to the indenture to eliminate substantially all of the restrictive covenants and some events of default and to amend other provisions.

The tender offer ended at 11:59 p.m. ET on April 3. It began on March 9.

For each $1,000 principal amount, the companies paid $1,053.07, which includes a consent payment of $20.00 for those who tendered their notes by the consent deadline.

Shea Homes also paid accrued interest.

Tendered notes could not be withdrawn after the consent deadline.

J.P. Morgan Securities LLC was the dealer manager and solicitation agent (800 245-8812 or call collect 212 270-1200). D.F. King & Co., Inc. was the information and tabulation agent (212 269-5550 collect or 866 388-7535).

Shea is a Walnut, Calif.-based homebuilder.

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