The Presley Cos.: The new-home builder sold...
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The Presley Cos.: The new-home builder sold $200 million of junk bonds Thursday priced to yield 12.5%, the company said.
The bonds were sold mostly to pension and mutual funds through Presley Cos.’ underwriter, Donaldson Lufkin & Jenrette, a New York investment banking firm.
“I think that’s a very attractive yield, considering today’s choppy market,” said Amin Arjoman, a real estate analyst with Beverly Hills junk bond firm Dabney Resnick Inc.
Proceeds from the offering are earmarked for retiring high-interest-rate debt as part of the company’s capital restructuring plan. Presley of Newport Beach builds homes in several Western states, but most of its business is in Southern California.
“We’re pleased to get it behind us,” said David Siegel, Presley’s chief financial officer. “Now, we can concentrate on what we do best--home building.”
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