Moves by public builders to re-engineer and lighten their debt loads enough to bear through the valley of the recession and into an upturn are continuing with two builders with some of the heaviest debt for their sizes announcing more restructuring this week.

Both Standard Pacific Homes and Beazer Homes USA made announcements of such moves at the close of market Tuesday.

Standard Pacific, which has a succession of substantial debts coming due in the next few years, 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.

Just how much stock will be issued is yet to be determined because some of the total number of shares will be determined by the price of stock over a period of time, said the company's CFO John Stephens.

"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.

There will be at least 597,656 shares traded for the $27.6 million in debt. The remaining number of shares traded will equal $21.16 million worth. It isn't known how many shares will equal $21.16 million now because the share price depends on the average stock price over varying consecutive trading days.

Since Standard Pacific said the deal should be done by or before Sept. 8, the time periods would include days after Aug. 26 and before Sept. 8. The company's stock price has been falling from a 52-week high of $4.43 on Aug. 26 to $3.30 on Sept. 1.

While the 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.

Expect more moves by Standard Pacific to adjust its debt.

"We are going to be working for a while," said Stephens. "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."

Beazer Homes, which began restructuring its significant debt load in June, announced a second round Tuesday.

The Atlanta-based company, which recently bought back or agreed to buy back $139.3 million worth of notes due in 2011, 2013, 2015, and 2016 for $102.5 million, said it plans to issue new notes due in 2017.

While Beazer gained $34.5 million because it bought back the old notes at a discount, the company will pay a heavier price for the new debt and the time it bought the company. The old debt interest rate varied from 6.5% to 8.125% while the new debt is at 12%.

While it was at it, Beazer also restructured the bond debt it had in three separate joint ventures. It spent $27.1 million toward the joint ventures' total $31.8 million debt buy back. The net gain to Beazer was $14 million on the extinguishment of the debt. It also got a discount from the same lender on a development site it had under option to buy, paying $1 million versus the $3.8 million it had originally agreed to pay.