Parent of A-M Homes of S. Calif. Wins Extension of Its Credit Line

A-M Homes, parent of A-M Homes of Southern California, said Wednesday that it has negotiated an extension of its $160-million credit line with a banking syndicate headed by Security Pacific National Bank.

With most banks and thrifts reining in real estate lending in response to tight federal regulations, the credit line could give A-M a significant competitive edge in the California housing market.

Building industry insiders say there is an increasing amount of land coming onto the market at bargain prices as developers who bought at the top of the market in 1988 and 1989 and can no longer afford to build on the property try to salvage some of their initial investments.

But only builders with ready access to financing can capitalize on such deals.

A-M, headquartered in Santa Barbara, has regional operations in Newport Beach and San Jose.

A-M Homes of Southern California, the Newport Beach unit, consistently ranks as one of Orange County’s largest home builders.

A-M’s majority owner is Jennings Group Limited, the largest home-building firm in Australia.

Steven Wallance, the parent company’s chief financial officer, said Jennings’ Pacific Rim connections were critical in assembling the syndicate and securing the credit extension.

In addition to Los Angeles-based Security Pacific, members of the syndicate include the Australia and New Zealand Banking Group, State Bank of South Australia, Chuo Trust of Tokyo, Westpac Bank of Australia, Bank of California and Chase Manhattan Bank.