Lennar/LNR $600 million credit facility for Newhall acquisition launches Tuesday

By Sara Rosenberg

New York, Dec. 9 - A bank meeting was held on Tuesday for a proposed $600 million credit facility to fund the acquisition of The Newhall Land and Farming Co. by an entity owned 50% by Lennar Corp. and 50% by LNR Property Corp., according to market sources. Bank One and Deutsche Bank are lead banks on the deal.

The facility consists of a $400 million term loan B with an interest rate of Libor plus 275 basis points and a $200 million revolving credit facility with an interest rate of Libor plus 225 basis points, sources said.

"They already have commitments on both [tranches]," one source added.

Under the acquisition agreement, which was first announced in July, the total purchase consideration after giving effect to payment of employee options is about $990 million plus liabilities.

Lennar is a Miami homebuilder. LNR is a Miami Beach, Fla., real estate investment, finance and management company.

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