Standard Pacific gets private equity bailout
Struggling home builder Standard Pacific got a big-time private equity bailout today by investors who will gobble up a bunch of equity in exchange for a nice cash infusion. They’ve also been able to restructure about $13 billion worth of debt through MaitlinPatterson.
We’ve seen this with the banks taking on huge amounts of cash from sovereign wealth funds and via other channels, it will be interesting to see how many home builders are ’saved’ in the same manner.
From the Wall Street Journal on the Standard Pacific bailout:
Standard Pacific Corp., a struggling home builder which for months has been besieged by bankruptcy rumors, is getting a much-needed equity infusion from one of its creditors, the big private equity firm MatlinPatterson.
MatlinPatterson has agreed to buy about $381 million of stock at $3.05 a share. In addition, the firm will swap $128.5 million of the builder’s debt that it owns for warrants to acquire preferred stock. The builder is also planning a rights offering, which is expected to raise an additional $152 million. If shareholders reject the proposed offering, MatlinPatterson has agreed to back stop any short fall.