Debt Terms Eased for Ailing Presley Cos.

The Presley Cos., a Newport Beach-based home builder that is deep in debt, will be loaned more money and given more time to repay what it owes, the company said Tuesday. Under terms of the agreement, Presley’s revolving line of credit has been increased to $100 million from $72 million, and the loan deadline was extended to May 2001. The loan improves the company’s liquidity, allowing Presley to better compete, the company said.

In May, the company hired an investment banking firm to help it resolve its financial troubles. Last week, Presley chairman William Lyon, who owns 15% of the company, offered to buy out the rest of the company for 40 cents a share, or about $18 million, a sizable discount. The company’s stock closed Tuesday at 75 cents a share, up 6 cents, on the New York Stock Exchange. A company spokesman said the board is considering the offer.