By Paul A. Harris
St. Louis, Aug. 1 - Standard Pacific Corp. priced $350 million of fixed-rate senior notes (Ba2/BB) in a two-part quick-to-market transaction, according to a syndicate source.
The company priced two $175 million bullet tranches at par.
A tranche of 10-year notes priced with a yield of 7%, at the tight end of the 7% to 7 1/8% price talk.
Meanwhile, a tranche of five-year notes priced with a yield of 6½%, at the tight end of the 6½% to 6 5/8% price talk.
Credit Suisse First Boston, Banc of America Securities LLC and JP Morgan were joint bookrunners for the Rule 144A transaction. The co-managers were Raymond James, Comerica Securities, Key Banc Capital Markets, Piper Jaffray, PNC Capital Markets and SunTrust Robinson Humphrey.
Proceeds will be used to call $125 million of the company's 9½% senior notes due 2010. The notes will become callable at 104.750 on Sept. 15.
Proceeds will also be used to repay bank debt and for general corporate purposes, which may include acquisitions.
The issuer is an Irvine, Calif., homebuilder.
| Issuer: | Standard Pacific Corp.
|
| Amount: | $350 million
|
| Security description: | Senior notes
|
| Bookrunners: | Credit Suisse First Boston, Banc of America Securities, JP Morgan
|
| Co-managers: | Raymond James, Comerica Securities, Key Banc Capital Markets, Piper Jaffray, PNC Capital Markets, SunTrust Robinson Humphrey
|
| Trade date: | Aug. 1
|
| Settlement date: | Aug. 8
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB
|
|
|
| 10-year notes
|
| Amount: | $175 million
|
| Maturity: | Aug. 15, 2015
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | 269 basis points
|
| Call protection: | Non-callable for life
|
| Price talk: | 7%-7 1/8%
|
|
|
| Five-year notes
|
| Amount: | $175 million
|
| Maturity: | Aug. 15, 2010
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| Spread: | 235 basis points
|
| Call protection: | Non-callable for life
|
| Price talk: | 6½%-6 5/8%
|
|
|
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