Investors bought 27 million of 50 million new stock shares in a transferable rights offering by Standard Pacific as part of its cash infusion deal with MatlinPatterson Global Advisers. The remaining 23 million shares are slated to be bought by the private equity firm by Friday, Sept. 5.

The stock offering, which will generate $152.5 million of cash before transaction expenses, was the third and final phase of MatlinPatterson's $530 million investment in the company. The company's investment in Standard Pacific also netted it three seats on the builder's board.

The first phase of the MatlinPatterson partnership closed in late June when MatlinPatterson bought roughly $381 million of new Standard Pacific senior convertible preferred stock. After shareholder approval on Monday, that stock converted to an equivalent amount of junior participating convertible preferred stock. Those shares, plus other shares of junior convertible stock issued to MatlinPatterson in June in exchange for $128.5 million of the company's bond debt, can all now convert to common stock in the company.

The effect of all the stock issuances is dilution of the company's shares. The stockholder approvals nearly tripled the number of shares the company can issue from 210 million to 610 million.

Standard Pacific CEO Jeffrey V. Peterson has said the cash inflow will help the company survive the downturn and put it in a position to profit from the downturn.