NEWPORT BEACH, Calif. Nov. 22, 1999 (PRIMEZONE) -- The Presley Companies (NYSE:PDC) today announced that it had purchased and surrendered for cancellation $20,000,000 principal amount of its outstanding 12-1/2 percent Senior Notes at a cost of $17,699,000. The Company will recognize a net gain from the purchase of approximately $1,830,000 after giving effect to income taxes and amortization of related deferred loan costs. Such gain will be reflected in the Company's results of operations for the fourth quarter ending December 31, 1999.
Under the Indenture dated June 29, 1994 covering the Senior Notes, the Company is required to offer to purchase $20,000,000 in principal amount of the Senior Notes if the Company's Consolidated Tangible Net Worth is below $60,000,000 for two consecutive fiscal quarters. The principal amount of the Senior Notes purchased by the Company is credited against this obligation. As a result of the repurchase announced today, the Company has satisfied its repurchase obligation for the prior two fiscal quarters. However, the Company will be required under the Indenture to offer to purchase up to $20,000,000 in principal amount of its Senior Notes if its Consolidated Tangible Net Worth is below $60,000,000 for two consecutive fiscal quarters in the future. A total of $100,000,000 in principal amount of Senior Notes remains outstanding following the repurchase announced today.
The Presley Companies is one of the oldest and largest homebuilders in the Southwest with development communities in California, Arizona, New Mexico and Nevada. Presley's corporate headquarters are located in Newport Beach, California.