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Standard Pacific Plans to Raise $600M

Irvine-based homebuilder Standard Pacific Corp. plans to raise up to $600 million, the company said in a regulatory filing Tuesday.

Proceeds could be used to repay debt, buy or develop new homes or for a possible acquisition of another homebuilder’s operations, according to Standard Pacific.

The company could issue debt or stock to raise money, it said.

Standard Pacific, which counts a market value of about $350 million, has been working to address its debt issues as of late.

Earlier this month, the company said it had obtained a waiver from its banks until the end of March to prevent defaulting on some loans and planed to continue talks with its banks to amend terms of its loans.

Last year, the company issued about $100 million in debt and offered up shares of the company to borrowers so they could short the stock as a hedge.

Bond buyers often short a company’s stock as a hedge bet in case the company’s situation worsens and its stock and bonds lose value.

But Standard Pacific took the extra step of actually providing shares for bets against the company.

This time around, Standard said it again could “enter into convertible debt security hedge transactions” for bond buyers.

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