WCI Communities Plans to Offer $125M in Notes

The contingent convertible senior subordinated notes will be able to be converted into shares of WCI's common stock.The company also has priced the offering of $125 million principal amount of 4% contingent convertible senior subordinated notes due 2023. The notes sale is expected to close August 5.

Under circumstances, the notes are convertible into WCI common stock at a conversion ratio of about 36.27 shares per $1,000 principal amount of the notes (equal to the initial conversion price of about $27.57 per share). WCI may redeem part or all of the notes in cash under circumstances Aug. 5, 2006, or after, or under any circumstances after Aug. 5, 2008. Holders may require WCI to repurchase the notes on Aug. 5, 2008, 2013 and 2018 or in certain situations.,

The company granted the initial note buyers the option to buy up to an extra $40 million principal amount of the notes.

WCI plans to use the offering's net proceeds, which should total about $121 million or $159.8 million if the initial buyers' option is exercised fully, to repay part of its outstanding debt as well as for general corporate purposes.

WCI Communities has developed master-planned communities for more than 50 years. WCI's communities include traditional and tower homes priced from the mid-$100,000s to more than $10 million. The company also has the Prudential Florida WCI Realty division with 28 offices, mortgage and title businesses, and an amenities division. WCI owns and controls about 14,000 acres of developable land.