Landsea Homes Corporation (NASDAQ:LSEA) has entered into a note purchase agreement with various investors, including funds and accounts managed by BlackRock Financial Management Inc and affiliates thereof and Angelo, Gordon & Co., L.P.
The note purchase agreement provides for the private placement of $250 million of 11% senior notes due 2028.
The notes will be guaranteed, jointly and severally, on a senior unsecured basis, by most of the company’s subsidiaries.
Landsea intends to use the net proceeds to pay down a portion of the outstanding borrowings under its revolving credit facility. It will also use the proceeds for working capital and general corporate purposes.
“This transaction represents another milestone for Landsea Homes by enabling us to have additional financial flexibility and new capital resources to drive our continued growth within the homebuilding industry,” said CEO John Ho.
Price Action: LSEA shares closed lower by 1.25% at $10.25 on Monday.
