Ashton Woods amends credit facility, curing defaults

By Angela McDaniels

Tacoma, Wash., Jan. 13 - Ashton Woods USA LLC has negotiated amendments to its senior credit facility that will cure existing defaults and provide the company with a $95 million replacement line of credit, according to a company news release.

Consummation of the amendment is conditioned upon closing of an exchange offer the company is holding for its $125 million 9½% senior subordinated notes due 2015. The offer will expire on Feb. 11.

On Aug. 22, Ashton Woods said it received a notice of default on the credit facility and that the default stemmed from its failure to comply with the tangible net worth, leverage ratio and land inventory ratio covenants.

Ashton Woods is an Atlanta-based private homebuilder.

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