William Lyon talks $300 million eight-year notes with 8½% area yield

By Paul A. Harris

Portland, Ore., Nov. 1 - William Lyon Homes, Inc. talked its $300 million offering of eight-year senior notes (Caa2/B-) with a yield in the 8½% area, an informed source said on Thursday.

In a structural change, call protection was extended to four years from three years. The first call premium remains unchanged at par plus 75% of the coupon.

The books close at 11 a.m. ET on Monday, and the deal is also set to price on Monday.

Credit Suisse Securities (USA) LLC is the bookrunner for the Rule 144A with registration rights sale.

The Newport Beach, Calif.-based homebuilder plans to use the proceeds, along with cash on hand, to refinance its $235 million senior secured term loan due 2015, to purchase or otherwise redeem its 12% senior subordinated secured notes due 2017 and to refinance $11 million of project-related debt.

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