William Lyon Homes, a builder that emerged from bankruptcy last year, seeks to raise as much as $208.8 million in a public stock offering.
The company, which trades over the counter, and an existing stockholder plan to sell 8.7 million shares for $22 to $24 each, according to a statement today by the Newport Beach, California-based builder.
William Lyon joins at least two U.S. homebuilders that have conducted public offerings this year as investors seek to capitalize on the housing market recovery. In March, U.S. builders broke ground on homes at an annual pace of more than 1 million for the first time since June 2008, according to the Commerce Department. Demand for new construction has been increasing as buyers seeking to take advantage of low mortgage rates find a tight supply of existing homes for sale.
Backers of William Lyon Homes include Paulson & Co., the firm run by John Paulson, who earned $15 billion in 2007 betting against subprime mortgages; Luxor Capital Group LP, a New York-based investment manager; and Thomas Barrack Jr.’s Colony Capital LLC, which lent $206 million to William Lyon before its bankruptcy. Luxor is offering about 2.2 million shares in the sale and will trim its stake to 30 percent from 47 percent. Paulson’s stake will decrease to 11 percent from 14 percent, and Colony’s stake will drop to 3.9 percent from 5 percent.
Tri Pointe Homes Inc., an Irvine, California-based builder backed by Barry Sternlicht and co-founded by former William Lyon executives Doug Bauer, Thomas Mitchell and Michael Grubbs, raised $267.6 million in a January IPO, including the overallotment option.
Taylor Morrison Home Corp., based in Scottsdale, Arizona and backed by Howard Marks’ Oaktree Capital Group LLC and David Bonderman’s TPG Capital, raised $722.9 million in an April IPO, including the overallotment option.
William Lyon Homes had a net loss of $11.6 million on revenue of $372.8 million from Feb. 25, 2012, when it emerged from bankruptcy, to Dec. 31, according to a regulatory filing. The company sold 883 homes for an average price of $277,000 at communities in California, Arizona, Nevada and Colorado.
The company had a net loss of $3.5 million or 3 cents a share for the quarter ended March 31, according to a May 3 filing.
The stock sale is being led by Credit Suisse Group AG and Citigroup Inc. The shares will be listed on the New York Stock Exchange under the symbol WLH.