Stanley-Martin buys back $16.3 million notes during first half

By Susanna Moon

Chicago, Aug. 12 - Stanley-Martin Communities, LLC said it redeemed $16.3 million of its subordinated notes in the first six months of 2008, while its parent Neighborhood Holdings, LLC bought back $37.4 million of outstanding notes.

Stanley-Martin repurchased $7.39 million of the notes in the first quarter. Neighborhood Holdings bought $16.52 million of its outstanding senior subordinated notes.

The company said it would continue to assess the current market value of the subordinated debt, outstanding debt on the line of credit and future liquidity requirements to determine whether to repurchase additional subordinated debt, subject to restrictions in the secured credit facility.

The senior secured credit facility is a three-year facility that matures on Dec. 1, 2010 and can be extended one year every Dec. 1 with the lender's approval.

As of June 30, the company had borrowed $88.8 million on its senior secured credit facility. As of June 30, the borrowing base calculations allowed for additional borrowing of up to $35.8 million over the $88.8 million already on the line, according to a press release.

Facility debt is secured by land and construction work-in-progress and carries a floating interest rate of one-month Libor plus 175 basis points to 225 bps.

The company previously said the notes bought by Stanley-Martin would be retired, while the ones bought by Neighborhood Holdings will be held for investment income.

Stanley-Martin is a Reston, Va.-based homebuilder.

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