General William Lyon gets commitment for $267 million term loan for stock tender offer

By Sara Rosenberg

New York, March 17 - General William Lyon, chairman of the board and chief executive officer of William Lyon Homes, has received a commitment for a $267 million five-year senior secured term loan to help fund the tender offer for all outstanding William Lyon shares, according to a commitment letter filed with the Securities and Exchange Commission Friday.

Lehman Brothers is the lead arranger and bookrunner on the deal, as well as the administrative agent and syndication agent.

The term loan will carry an interest rate of Libor plus 295 basis points for the first 12 months, then increase to Libor plus 550 bps for months 13 through 36, Libor plus 650 bps for months 37 through 48 and Libor plus 750 bps for months 49 through 60, the filing said.

Under the tender, General William Lyon has offered to purchase William Lyon stock for $93.00 per share in cash.

The tender offer expires on April 13.

William Lyon Homes is a Newport Beach, Calif., designer, constructor and seller of single-family detached and attached homes.

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