WCI Closes on Sale of Lots to Toll Brothers
Continues to Reduce Debt Balance
BONITA SPRINGS, Fla.--(BUSINESS WIRE)--WCI Communities, Inc. announced today that it completed the sale of 102 homesites for $8.9 million to Toll Brothers at their Four Corners community in East Fishkill, New York. WCI will complete its remaining backlog of 23 homes in the project by the end of this year. “The sale of Four Corners is part of our overall plan to sell assets that we deem non-core to our long-term strategy,” said David L. Fry, President and Chief Executive Officer. “I am very proud of the way our team has performed during this difficult period. Everyone remains focused on continuing to reduce leverage while pursuing opportunities to increase the value of our core assets”
The company announced that it has paid down a significant portion of its outstanding Senior Term Loan. “Last week the Company repaid another $70 million of debt, reducing the total Senior Term-Loan balance to $144.5 million, which is less than half of the original note. We have paid down over $150 million during the last five months,” said Mr. Fry.
WCI Communities, Inc. also announced sales numbers for 2009 indicating that it finished the year with 741 net sales and sold out residences in 16 towers and 10 homebuilding communities. WCI also closed on five non-core assets sales totaling $108 million in 2009.
“I am very proud of the way our team has performed during this difficult period. Everyone remains focused on continuing to reduce leverage while pursuing opportunities to increase the value of our core assets,” said Mr. Fry. “We continue to take important steps each day in executing on our plan to pay down debt and operate as a profitable, more efficient Florida-focused homebuilder and developer. Although we have witnessed some positive market trends and are executing on our initiatives, we remain watchful of the risks posed by several macro-economic factors. We will continue to take a cautiously optimistic approach to our future,” concluded Mr. Fry.
WCI Communities creates amenity-rich, master-planned lifestyle communities, catering to primary, retirement and second-home buyers. The company offers traditional single and multi-family home choices with prices from the mid-$100,000s to just under $1 million. In addition to homebuilding and development, WCI generates revenues from its Prudential Florida Realty business, the second largest residential realty company in Florida; its Wells Fargo-affiliated mortgage services; insurance and title services, and its recreational amenities, as well as through land sales and joint ventures.
Feb 02, 2010