Homebuilders Securing Credit Lines If They Still Can [Housing Tracker]

 |  Includes: OHB, TOL, WFC, WGO
by: Judy Weil

Seeking Alpha's Housing Tracker is a collection of housing-related excerpts from various sources, grouped by topic. Feel free to post any interesting links on the subject in the comments section below.

Toll Brothers To Hold New Home Expo. Las Vegas: The public is invited to attend the Toll Brothers (NYSE:TOL) New Home Expo, a two-day showcase of homes, Sept. 27 and 28 at Traccia in Summerlin and at Toll Brothers at Inspirada… For this weekend only, Toll Brothers is offering special financing under 6% and incentives towards closing costs at its participating new home communities in the Las Vegas and Henderson area.” (Las Vegas Review Journal, Sept. 20)

276-Home Mt. Olive Project Receives One-Year Extension. New Jersey: “Toll Brothers is slowly moving forward with the construction of the 276-unit Morris Chase development in the township… The homebuilding company received a one-year extension for municipal permit approvals related to the proposed development of 105 single-family homes and 171 townhouses. Attorney Joel Kobert said Toll Brothers hopes to begin selling the first phase of homes next spring, but that phase one would not likely be completed until 2016. Toll Brothers already has put $27 million into the project.” (NJ Daily Record, Sept. 20)

Winnebago Secures $25-Million Revolving Credit Line. “Winnebago Industries Inc. (NYSE:WGO), the third-largest U.S. motor home maker, agreed to a $25 million US revolving credit line from Wells Fargo Bank (NYSE:WFC), increasing its access to funding. The accord is set to expire Sept. 17, 2010, the Forest City, Iowa-based company said yesterday in a U.S. regulatory filing. The funding, if needed, will be used for working capital or general corporate purposes, Winnebago said. Q3 sales tumbled 40% because of "drastic declines" in the market, the company said.” (Times Colonist, Sept. 20)

Toll Plan Has Merit. Brooklyn, NY: “On Thursday… a local community board [reviewed] a proposal by Toll Brothers to build a 447-unit mixed-income residential, commercial and open space project between Carroll and Second streets along the Gowanus Canal… Toll will go through the city’s “uniform land-use review procedure,” …an eight- to 12-month analysis… Yes, taxpayer money would be sought so that 30% of the units can be set aside for below-market-rate tenants, but Toll is not seeking eminent domain or the kind of oversized subsidies and taxpayer-financed “infrastructure” improvements that others have gotten. Additionally, the project involves substantial risk to the developers.” (Brooklyn Paper, Sept. 18)

Orleans Works Toward Debt Pact. “Orleans Homebuilders (OHB) has inched closer to sealing a deal with its lenders to amend certain financial covenants related to its $585.0 million credit facility. Management secured a critical extension on an existing waiver earlier this week after facing a default on the credit facility. The original waiver, which gave the company a break from certain financial covenants, was set to expire on Sept. 15. However, with the new extension, which has a lifespan than runs through Sept. 29, Orleans executives have time to lace up the amendment deal, which has been in the works for some time.” (Big Builder, Sept. 18)


Get Seeking Alpha's housing market coverage by email -- it's free and takes only seconds to sign up.