Standard Pacific, which announced Wednesday that it planned to issue $200 million worth of bonds, announced today what it plans to use some of the cash for.
In a move that echoes the actions of many other builders with large amounts of debt coming due in the next few years, the Irvine, Calif.-based company issued an offer to buy back $175 million worth of its notes due in 2010, 2011, and 2013, with preference and a premium being offered for the debt due soonest.
It is offering to pay $1,020 for every $1,000 worth of the $148.5 million of 6.5% notes due in August 2010, $1,000 for any of the $170.6 million of 7.75% notes due in May 2011, and $900 for the $125 million in 7.75% notes due in March 2013.
As part of the buyback offer, Standard Pacific is asking bondholders to modify or remove some restrictive covenants in the notes.
In other moves to reduce its debt, Standard Pacific recently announced a swap of bond debt for stock, issuing 6,398,433 shares in exchange for extinguishing $27,637,000 of bond debt.