Standard Pacific is continuing its efforts to restructure its substantial stack of debt coming due in the next few years. The company said Wednesday that it plans to issue and sell $200 million in senior notes due 2016 in a private offering that is exempt from the registration requirements of the Securities Act of 1933.

Ratings agency Fitch on Thursday said it planned to rate the offering below investment grade at "CC" with a recovery rating of "RR5," meaning below average chance of recovery, with a rating outlook of "negative."

It was the second substantial move announced by the Irvine, Calif.-based company in recent weeks. On Aug. 26, it announced it has struck an agreement with two separate holders of bond debt due in 2012 to swap $27.6 million worth of 6% interest bonds for stock in the company.

On Wednesday, it disclosed that it issued a total of 6,398,433 shares of common stock in exchange for $27,637,000 aggregate principal amount of its 2012 Notes.

The company's CFO, John Stephens, said at the time, "The good news is we are going to retire [the debt] at a discount," said Stephens. "We are going to be booking a gain on the transaction." Just how much of a discount hasn't been released by the company.

While that move will increase the shares of stock, potentially diluting the value of current holdings, eliminating the debt at a discount could actually end with the holders' share values higher or even despite the dilution, said Stephens. "It could be accretive," he said. At market close Wednesday, the company had 101.31 million shares outstanding.

More debt-shifting moves are likely.

"We are going to be working for a while," said Stephens recently. "We are clearing more of a runway for ourselves. We have all this debt coming due. We are determining how we are going to push it back."

The company also announced it has spent some cash unwinding two joint ventures in Southern California.. It acquired $80.3 million in real estate inventories, including 38 completed homes, eight model homes, 10 under construction and 57 finished lots. It assumed $52 million of secured project debt in the process and has subsequently paid off $22.9 million.