...NEW YORK (S&P Global Ratings) March 6, 2018--S&P Global Ratings said today that it has assigned its 'B+' issue-level rating to Newport Beach, Calif.-based homebuilder William Lyon Homes Inc.'s (WLH) proposed $350 million senior unsecured notes due in 2023. The recovery rating is '2', indicating our expectation of substantial (70%-90%; rounded estimate: 70%) recovery in the event of default. The company will use proceeds to fund the recently announced acquisition of RSI Homes and to redeem its 2019 notes. The 'B' corporate credit rating and stable outlook on William Lyon are unchanged. Our view of WLH's business risk is based on the company's relatively small size but attractive end markets and growing platform. WLH focuses its product strategy on entry-level and first-time move-up homes. The acquisition of RSI is consistent with the company's focus to increase its exposure to the entry-level segment and further diversifies the company geographically. Pro forma for the acquisition, 28% of...
