Home › Bonita › Bonita
WCI arranges to pay off debt due Aug. 5
RELATED STORIES
More Bonita
- First U.S. planting of ‘super’ citrus tree will be in Southwest Florida
- Lee County report: $17M saved by not having construction manager
- Gateway Murder trial: New discovery may contradict Cooper’s defense
Tell us about it
- What would you add to this story? Tell us what we missed.
- Do you have photos from this event? Documents we need to see? Share with us.
- Upload photos & videos
- More ways to get your stuff online and in the paper.
STORY TOOLS
Share and Enjoy [?]
With its creditors knocking at the door, Bonita Springs-based homebuilder WCI Communities Inc. on Tuesday announced an exchange offer for $125 million in debt that’s coming due Aug. 5.
The company is offering to pay off its 4 percent convertible notes with the new debt.
The new 16 percent senior secured notes would be due in 2013.
The offer expires at midnight Aug. 4.
The company is struggling to pay the debt it owes because of a real estate slump that has led to sluggish sales and canceled contracts.
On March 31, the company had $48.5 million in cash and equivalents, leading analysts to question whether it would be able to pay off its debt next month.
For the offer to proceed, at least 95 percent of the convertible notes must be offered and WCI must successfully amend its existing credit facilities and sell new second lien notes, the company said in a news announcement.
In the past week, WCI shares have hit new record lows on the New York Stock Exchange. Shares closed up 11 cents at $1.37 on Tuesday.
Comments
This site does not necessarily agree with comments posted below. Comments are the sole responsibility of the person posting them. Break our rules, and we will ban you. No exceptions, no second chances. Read our privacy policy & user agreement.
Can you spell BANKRUPT
#1 Posted by TheLissack on July 9, 2008 at 9:27 a.m. (Suggest removal)
Post your comment
(Requires free registration.)