Taylor Morrison announces extension of exchange offers for William Lyon notes

Chicago, Jan. 3 – Taylor Morrison Communities, Inc. announced that it plans to extend its exchange offer for notes issued by William Lyon Homes, Inc. to Jan. 20 at 12:01 a.m. ET.

The exchange is being conducted in connection with Taylor Morrison’s previously announced proposed acquisition of William Lyon.

The exchange offer was initially set to expire at 12:01 a.m. ET on Jan. 6.

Exchange offers, consent bid

As previously reported, Taylor Morrison is offering to exchange any and all of three series of the William Lyon notes for up to $1.09 billion of new notes issued by Taylor Morrison. Each series of new notes will carry the same coupon and maturity date as the relevant series of existing notes, as previously reported.

The notes include $350 million of 6% senior notes due Sept. 1, 2023, $436,886,000 of 5 7/8% senior notes due Jan. 31, 2025 and $300 million of 6 5/8% senior notes due July 15, 2027

As of 5 p.m. ET on Jan. 3, holders had tendered $323,947,000 of the 2023 notes. Additionally, holders had tendered $428,139,000 of the 2025 notes and had tendered $290.4 million of the 2027 notes.

The exchange offer was running concurrent with a consent solicitation and the amount of consents received was sufficient to pass the amendments sought by the company, according to an earlier update.

As a result, William Lyon, the guarantors of its notes and the trustee under indentures have executed supplemental indentures to effect the amendments.

The proposed amendments eliminated substantially all of the covenants in each indenture, including the requirement to offer to repurchase the William Lyon notes upon a change of control, and eliminate other restrictive provisions and events that may lead to an event of default.

The exchange is conditioned on closing of the merger.

Settlement for the exchange offers is expected to occur promptly after the expiration date, and the expiration date of each exchange offer is expected to be extended such that settlement coincides with closing of the merger.

The deadline to receive the consent payment was 5 p.m. ET on Dec. 18.

Global Bondholder Services Corp. (866 807-2200, 212 430-3774 or https://gbsc-usa.com/eligibility/taylormorrison) is the exchange and information agent.

Taylor Morrison is a Scottsdale, Ariz.-based homebuilder. William Lyon is a Newport Beach, Calif.-based homebuilder.

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