Irvine-based homebuilder Standard Pacific Corp. said Tuesday it plans to sell $650 million worth of debt to pay off existing bonds and loans.
The new bonds are set to run through 2018 and 2020 and pay holders interest of about 8%.
Standard Pacific plans to use the proceeds to pay off 9.25% bonds due in 2012, 6.25% bonds due in 2014 and 7% bonds due in 2015.
The company also plans to pay off $225 million left on a loan.
Anything left is set to go toward $27 million in other debt, according to the company.
Part of the new bonds are being lumped in with Standard Pacific’s existing bonds due 2018.
The add-on bonds are expected to pay holders 8.125%, according to a Wall Street Journal report.
The rest of the new offering are bonds due in 2020 that are expected to pay 8.5% interest.
The bonds are expected to price at $101.4, a slight premium to their face value.
The offering is part of an ongoing financial restructuring at Standard Pacific, the largest homebuilder based in the county.
The housing downturn drove Standard Pacific to the brink of bankruptcy in 2008, when the company struck a $530 million financing deal with New York-based MatlinPatterson Global Advisers LLC.
The deal saw MatlinPatterson buy $381 million in new stock and retire $128.5 million worth of Standard Pacific debt in exchange for warrants for stock.
Last month, Standard Pacific reworked an agreement with MatlinPatterson that allows the firm to exercise warrants to buy Standard Pacific stock at a discount.
MatlinPatterson now controls about half of the voting stock of Standard Pacific and holds warrants that convert into 89 million preferred shares, worth about $188 million at the discounted rate.
Standard Pacific plans to use the proceeds of the warrant conversion for land acquisitions and to apply for a revolving credit line.
The company’s bond offering is the second recently by a local company.
On Monday, Huntington Beach-based clothing maker Quiksilver Inc. outlined terms for a $266 million bond offering in Europe, taking another step in the reworking of its finances.
Quiksilver plans to use the proceeds to pay off $145 million in loans in Europe as part of a move announced last month.
Like Standard Pacific, Quiksilver is working back from a near-death experience.
The company’s 2005 $560 million buy of French ski maker Rossignol drove a string of losses at Quiksilver and left the company laden with debt.
