Irvine-based homebuilder Standard Pacific Corp. entered a $210 million credit facility and plans to use the funds to purchase land.
The three-year credit line can be increased to $400 million and was arranged by J.P. Morgan Securities LLC and Citigroup Global Markets. Other participants include Bank of America, Credit Suisse, Deutsche Bank, Bank of the West, Comerica and Union Bank.
Standard Pacific is among the nation's largest homebuilders. The company has developed more than 112,000 homes throughout Arizona, California, the Carolinas, Colorado, Florida, Texas and Nevada, including local properties in Brea, Irvine, Newport Beach and San Clemente.
"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," said Ken Campbell, president and CEO of Standard Pacific.
Last month, Standard Pacific reported that it bought 750 lots worth $33.6 million in the fourth quarter, and had approved the purchase of $45 million of land made up of 1,400 lots. For the year, the company purchased 5,400 lots valued at $315.4 million. Standard Pacific hopes to open more than 55 new communities this year, according to its fourth-quarter and full-year results.
"This unsecured credit facility is an indication of the support and confidence our lenders have in the company," said Campbell. "We appreciate the support of our bank group and look forward to building on this financial foundation as we look to grow our business."
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