SEC Clears Plan by Standard-Pacific to Sell 1.8 Million Units

Standard-Pacific L.P., a Costa Mesa home builder that reorganized into a limited partnership late last month, said the Securities and Exchange Commission has approved a proposed offering of 1.8 million company units. Proceeds of the offering, at $28 per unit, are to be used to help the company and its unit holders pay federal taxes incurred as a result of the conversion from a corporation.

The company, which has 11.2 million units outstanding, is selling 1.5 million units and its chairman is selling 300,000 units.

Net proceeds of the company’s 1.5-million-unit offer--expected to total $46.7 million should underwriters exercise their option to buy an additional 270,000 units--will be used to pay part of the company’s conversion-related taxes, estimated at $26 million, and to fund a special distribution of about $40.2 million to unit holders, the company said.

The special fund will assist unit holders, who will receive $3 per unit, in paying personal taxes owed the federal government as a result of the conversion, said Robert J. St. Lawrence, Standard Pacific’s chief financial officer.

Additionally, Arthur E. Svendsen, the company’s chairman, plans to sell 300,000 of his 1.6 million units to pay personal taxes he owes because of the limited partnership conversion, Lawrence said.

Managing underwriters for the offering are Smith Barney, Harris Upham & Co. Inc.; Donaldson, Lufkin & Jenrette Securities Corp., and Bear, Stearns & Co. Inc.