Standard Pacific upsizes planned 20-year convertibles, tightens talk

By Rebecca Melvin

New York, July 31 - Standard Pacific Corp. upsized its planned 20-year convertible senior notes to $200 million from $150 million and tightened talk to a coupon of 1.125% to 1.375% with an initial conversion premium of 42.5%, according to a syndicate source, who anticipated final pricing after the market close on Tuesday.

The original talk on terms was for a 1.125% to 1.625% coupon and a 37.5% to 42.5% premium.

The registered deal has an over-allotment option for the underwriters to purchase up to an additional $22.5 million of notes.

Standard Pacific also planned to offer 12.5 million shares of its common stock, with an option for underwriters to purchase up to an additional 1,875,000 common shares.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Bank of America Merrill Lynch are the joint bookrunners of both offerings.

The convertible notes are non-callable until Aug. 5, 2017,with put dates in years five, 10 and 15. Upon conversion, the notes will be settled with shares.

There is a change-of-control make whole, anti-dilution adjustments and dividend protection.

Proceeds will be used for general corporate purposes, including land acquisition and development, home construction, and other related purposes. The stock and convertibles offerings are not conditioned on each other.

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

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