William Lyon Homes again extends consent solicitation

By Jennifer Chiou

New York, Oct. 10 - William Lyon Homes subsidiary William Lyon Homes, Inc. once more extended the consent solicitation for its 10¾% senior notes due 2013, 7 5/8% senior notes due 2012 and 7½% senior notes due 2014.

The deadline was pushed back to 5 p.m. ET on Oct. 17, pushed back from Oct. 10. Originally set for Sept. 22, the deadline had already been extended to Oct. 2.

The company is seeking consents from holders of a majority of the outstanding principal of the notes to amend reporting requirements and restricted payments covenants of the note indentures.

Specifically, the company has de-listed the 10¾% and 7½% notes from the New York Stock Exchange, and it is terminating registration of all of its senior notes with the Securities and Exchange Commission. As a result, the company wants to amend the requirement that it file reports with the SEC in order to allow the company to instead supply reports through Intralinks or a similar transmission system.

The company is also considering making a subchapter S election. As a result, the company would like to amend the notes to permit distribution to the shareholders of amounts corresponding to their tax liabilities arising from ownership of the company's stock.

Consenting noteholders will receive a consent fee of $2.50 per $1,000 principal amount of the notes if the company receives the required consents.

The consent solicitation was announced on Sept. 11.

UBS Securities LLC (888 722-9555 ext. 4210 or collect 203 719-4210) is the solicitation agent. Global Bondholder Services Corp. (866 470-3900 or collect 212 430-3774) is the information agent.

With headquarters in Newport Beach, Calif., William Lyon Homes designs, builds and sells single family homes in California, Arizona and Nevada.

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