Standard Pacific amends loan, providing for 50 bps fee if requirements are not met

By Sara Rosenberg

New York, Sept. 3 - Standard Pacific Corp. amended its term loan B on Thursday, requiring the payment of a 50 basis points fee per quarter if the company fails to meet certain requirements, according to an 8-K filed with the Securities and Exchange Commission.

In order to avoid the fee, the company must maintain either a minimum ratio of cash flow from operations to consolidated homebuilding interest incurred, a minimum ratio of home building EBITDA to consolidated home building interest incurred or a maximum ratio of combined net home building debt to consolidated tangible net worth.

In addition, the amendment increased the ratio of cash flow from operations to consolidated homebuilding interest incurred and homebuilding EBITDA to consolidated homebuilding interest incurred test to 1.25 to 1.0 from 1.0 to 1.0 for each fiscal quarter following Sept. 30, 2011.

Bank of America is the administrative agent on the deal.

Standard Pacific is an Irvine, Calif.-based builder of single-family attached and detached homes.

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