William Lyon gets $200 million in credit facilities

By Sara Rosenberg

New York, Sept. 22 - William Lyon Homes Inc. closed on $200 million in amended and restated credit facilities, consisting of a $50 million revolver due Sept. 21, 2006 with California Bank & Trust and a $150 million loan due Sept. 24, 2008 with RFC Construction Funding Corp., according to an 8-K filed with the Securities and Exchange Commission Wednesday.

The $50 million facility, which became effective Sept. 16 and replaces a same size facility that was scheduled to mature this month, carries an interest rate of Libor plus 240 to 260 basis points, depending on the ratio of total liabilities to tangible net worth. As of Sept. 16, interest was being charged at the rate of 4.2325%. Borrowings will be used for the acquisition, development and construction of current and future residential homebuilding projects.

The $150 million facility, which became effective on Sept. 17 and replaces a same size facility that was set to mature in September 2006, carries an interest rate of prime plus 25 basis points.

Covenants under the facilities include tangible net worth of $200 million, ratio of total liabilities to tangible net worth of less than 3.25-to-1 and minimum liquidity of at least $10 million.

As of Sept., the company had about $28.4 million of borrowings outstanding under the $50 million facility and about $82.9 million outstanding under the $150 million facility, the filing said.

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

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