Newport Beach-based William Lyon Homes said on Friday it met a Sept. 14 deadline to make a delinquent loan payment, staving off the possibility of defaulting on a note with nearly $78 million of outstanding principal.
The builder said last month it didn’t make a $2.9 million semi-annual payment tied to a 7.5% senior note that was due Aug. 15, raising some eyebrows about the financial health of the company, which still is dealing with the down real estate market.
The notes were part of $150 million raised by William Lyon Homes in early 2004. Of the initial $150 million, $77.9 million remained outstanding as of June 30.
The builder said last month that it planned to take advantage of a 30-day grace period that ran until Sept. 14.
If that deadline wasn’t met, the builder faced the potential of going into default on the loan, as well as possibly defaulting on a separate $206 million loan the company took in 2009 from Los Angeles-based hedge fund Colony Capital LLC.
William Lyon Homes said in a filing with the Securities and Exchange Commission today that it made the semi-annual payment on the 14th.
The iconic builder was taken private in 2006, near the peak of the housing boom.
The company still reports financial results for its bondholders.
