OTHER NEWS - April 1, 1994
From Times Staff and Wire Reports
Presley Cos. Ease Debt Burden: The Newport Beach home builder has completed an agreement with its lenders that will give them 70% of the company in return for new loan terms and a $95 million reduction in the company’s $340 million debt. The swap of some of the debt for stock in Presley requires shareholder approval. A meeting has not yet been set. Under the agreement, lenders Foothill Capital Corp in Los Angeles and Pearl Street L.P. in New York would get three of nine seats on Presley’s board. Presley would be left with a three-year $95 million line of credit and a $150 million loan due in five years. In addition, the lenders would provide an additional $20-million line of credit to purchase and develop land.
