Landsea Homes announces new unsecured credit facility
NEWPORT BEACH, Calif., Oct. 07, 2021 (GLOBE NEWSWIRE) – Landsea Homes Corporation (Nasdaq: LSEA) (“Landsea Homes” or the “Company”), a publicly traded residential home builder, today announced that the Company has established a $ 500 million unsecured revolving credit facility with an accordion feature that increases the borrowing capacity under the revolving credit facility up to an additional $ 350 million subject to certain conditions. Western Alliance Bank and BofA Securities, Inc. (Bank of America) acted as joint lead managers and joint bookkeepers. The Company plans to use the new facility to refinance its outstanding debts and expand its existing business.
“Today marks an important milestone in the evolution of our business,” said John Ho, President and CEO and Director of Landsea Homes. “Although we have generated significant growth over the past few years, the secure nature of our debt financing has always been a challenge for our business. This new unsecured credit facility allows us to refinance our existing secured debt, reduce our interest costs and expand our operations more efficiently.
Since its inception in 2013, Landsea Homes has strived to design and build premier homes and sustainable planned communities in some of the country’s most desirable markets. Through its organic expansion, the strategic acquisition of private builders and the focus on providing the entry-level housing market with housing that meets the highest standards in sustainable construction, home automation and smart home technology, Landsea Homes intends to continue to gain market share and generate growth. In its most recent second quarter, the Company generated year-over-year revenue growth of 163% and increased its unit backlog at the end of the quarter by 40% compared to Last year.
“Putting in place this unsecured revolving credit facility is a game-changer for our business,” said Mike Forsum, President and Chief Operating Officer, Landsea Homes. “We believe this will empower us to act more quickly on opportunities when they arise and to compete more effectively for land deals, thanks to the lower cost of capital. We are delighted to be working with our new lenders and look forward to developing the relationship in the years to come. “
For more information on Landsea Homes, visit: www.landseahomes.com.
Portions of this press release may contain “forward-looking statements” within the meaning of federal securities laws. Landsea homes cautions that forward-looking statements are subject to many assumptions, risks and uncertainties, which change over time. These risks and uncertainties include, without limitation, the risk factors described by Landsea Homes in its filings with the Securities and Exchange Commission. Therefore, forward-looking statements should not be taken to represent our views at a later date, and you should not place undue reliance on such forward-looking statements in deciding to invest in our securities. We assume no obligation to update any forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or other events, except as may be required by applicable securities laws. In addition, reconciliations of the non-GAAP financial measures referenced in this press release to the most comparable GAAP measures are available on Landsea Homes’ website and in its documents with the SEC.
Investor Relations Contact:
Drew Mackintosh, CFA
Mackintosh Investor Relations, LLC