Standard Pacific gets $350 million restated revolving credit facility

By Marisa Wong

Madison, Wis., Oct. 19 - Standard Pacific Corp. entered into an amended and restated credit agreement that provides for $350 million of commitments available for letters of credit, according to an 8-K filing with the Securities and Exchange Commission.

The amended facility, completed Oct. 19, restates the company's previous $210 million senior revolving credit facility.

The facility was arranged by J.P. Morgan Securities LLC and Citigroup Global Markets, Inc. as joint lead arrangers and joint bookrunners and JPMorgan Chase Bank, NA as administrative agent.

Of the $350 million, $30 million matures on Feb. 28, 2014, and $320 million matures on Oct. 19, 2015.

Interest is equal to Libor plus 350 basis points.

The facility has an accordion feature that would lift total commitments to $550 million.

According to the filing, the credit agreement contains financial and other covenants, including a minimum tangible net worth requirement of $525 million, a net homebuilding leverage covenant that prohibits the leverage ratio from initially exceeding 2.50 to 1.00, decreasing to 2.25 to 1.00 for the March 31, 2014 measurement period and thereafter, and a land covenant which limits land not under development to an amount not to exceed tangible net worth.

The company is also required to maintain an interest coverage ratio of initially at least 1.00 to 1.00, increasing to 1.25 to 1.00 for the March 31, 2014 measurement period and after. However, if the company fails to meet the interest coverage ratio, it is not an event of default but its borrowing availability may become more limited.

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

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