William Lyon Homes lenders agree to waive potential covenant default

By Caroline Salls

Pittsburgh, Sept. 20 - William Lyon Homes, Inc. has entered into a second amendment and third waiver to its $206 million senior secured term loan agreement with ColFin WLH Funding, LLC, according to an 8-K filed with the Securities and Exchange Commission.

Specifically, the lenders have waived any potential default related to the minimum tangible net worth covenants in the loan agreement.

The waiver also provides technical amendments to specified definitions and covenants and gives ColFin a right of first refusal on potential future financings, according to the filing.

The waiver is effective until Oct. 7.

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

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