William Lyon Homes skips Aug. 15 interest payment on 7½% senior notes

By Caroline Salls

Pittsburgh, Aug. 17 - William Lyon Homes, Inc. did not make the $2.92 million interest payment due Aug. 15 on its $77.8 million of 7½% senior notes due 2014, according to an 8-K filed with the Securities and Exchange Commission.

The company said it plans to take advantage of the 30-day grace period for making the payment, and no default will be triggered unless the payment is not made within that period.

However, if the payment is not made by Sept. 14, the notes could be accelerated.

Any acceleration of the 7½% notes could also constitute an event of default under William Lyon Homes' $205.4 million in other outstanding senior notes, as well as under the company's $206 million senior secured term loan agreement with ColFin WLH Funding, LLC and a $9.9 million loan agreement between a joint venture subsidiary and U.S. Bank.

William Lyon is a homebuilder based in Newport Beach, Calif.

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