New Issue: William Lyon Homes sells upsized $325 million eight-year notes at par to yield 8½%

By Paul A. Harris

Portland, Ore., Nov. 5 - William Lyon Homes, Inc. priced an upsized $325 million issue of eight-year senior notes (Caa2/B-/) at par to yield 8½% on Monday, according to an informed source.

The yield printed on top of yield talk.

Credit Suisse Securities (USA) LLC was the bookrunner for the issue, which was upsized from $300 million.

In a structural change, call protection was extended to four years from three years.

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.

Issuer:	William Lyon Homes, Inc.
Amount:	$325 million, increased from $300 million
Maturity:	Nov. 15, 2020
Securities:	Senior notes
Bookrunner:	Credit Suisse Securities (USA) LLC
Co-managers:	Comerica Securities Inc., Houlihan Lokey Capital Inc.
Coupon:	8½%
Price:	Par
Yield:	8½%
Spread:	719 bps
Call features:	Callable on Nov. 15, 2016 at 104.25, 102.125, par on and after Nov. 15, 2018 (call protection extended to four years from three years)
Equity clawback:	35% at 108.5 until Nov. 15, 2015
Change-of-control put:	101%
Trade date:	Nov. 5
Settlement date:	Nov. 8
Ratings:	Moody's: Caa2
	Standard & Poor's: B-
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	8½% area
Marketing:	Roadshow

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