Standard Pacific Drops Plan to Sell Securities

Citing high finance rates, Standard Pacific Corp. of Costa Mesa said Friday it has scrapped its plan to raise $100 million by selling long-term securities. The home builder, trying to generate working capital, said it has alternative sources of financing to support its business plans, but its statement did not elaborate and the company did not return phone calls. “I think it shows home builders remain out of favor, despite the great numbers home builders are posting,” said analyst Craig Silvers, vice president of Sutro & Co. Inc. of Los Angeles.

Even though construction companies are returning to profit levels of the 1980s, Wall Street believes the good times will not continue for all builders, he said. “A lot of investors see better opportunities in other sectors and expect the cycle to turn down,” Silvers said. Standard Pacific’s stock closed at $12, down 6 cents a share, on the New York Stock Exchange.