IRVINE, CA-Standard Pacific Corp. has entered into a new $210 million unsecured revolving bank credit facility. The new three-year facility matures in February 2014 and has an accordion feature under which the aggregate commitment may be increased up to $400 million, subject to the availability of additional bank commitments and certain other conditions, according to a prepared statement.
Ken Campbell, president and CEO points out that “this unsecured credit facility is an indication of the support and confidence our lenders have in the company.” He adds that “the additional liquidity from this facility along with the over $700 million in cash that we had as of the end of 2010 provides us further flexibility to carry out our stated strategy of pursuing land acquisitions during the market downturn in preparation for the eventual market recovery.”
John Stephens, SVP and CFO of Standard Pacific Corp., tells GlobeSt.com’s Natalie Dolce that the company has been active in the land market over the past year-and-a-half, with a heavy emphasis in California—about two-thirds of dollar amount and 40% of lots—more so in Southern California. He also points out that the company has also been active in the Carolinas, Texas and Florita and to a lesser degree, Phoenix and Colorado.
As far as strategy, Stephens points out that it is about “heavy California concentration with an emphasis on the move-up buyer.” He adds that “We are in the reinvestment mode preparing for the eventual housing market recovery.”
The new facility was arranged by J.P. Morgan Securities LLC and Citigroup Global Markets, Inc. as joint lead arrangers and joint bookrunners. Other participant banks include Bank of America, Credit Suisse, Deutsche Bank, Bank of the West, Comerica and Union Bank. “We appreciate the support of our bank group and look forward to building on this financial foundation as we look to grow our business,” says Campbell.
As GlobeSt.com previously posted, the locally based homebuilder revealed plans in December to trade a $650-million debt to settle existing mortgages and bonds. The proposal at the time was “an element of the financial restructuring happening at Standard Pacific,” which is considered one of the biggest homebuilders in the Orange County region. A $530-million funding deal with MatlinPatterson Global Advisers LLC in 2008 saved the homebuilder from bankruptcy, according to the article.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
