Group TECHNICAL OLYMPIC management informs the investment community that NYSE listed US affiliate TOUSA Inc. announced today that it received an extension on its written financing commitment letter from Citigroup Global Markets Inc., together with certain of its affiliates.
As previously announced, Citi has agreed to provide financing to establish a (i) new $250.0 million aggregate principal amount first lien term loan facility (the First Lien Term Loan Facility) and (ii) a new $250.0 million aggregate principal amount second lien term loan facility (together with the First Term Loan Facility, the Facilities). In addition, as a condition to the commitments, the Company's existing $800.0 million revolving loan facility (the Revolving Loan Facility) shall be amended and restated to (i) reduce the revolving commitments thereunder by $100.0 million and (ii) incorporate the terms and conditions of the First Lien Term Loan Facility, and as a result the commitments are subject to the approval of the lenders in the Revolving Loan Facility.
The proceeds from the Facilities are expected to be used to fund any settlements related to the Transeastern JV. There is no assurance that the Company will be able to reach satisfactory settlements with the Transeastern JV's creditors or land bankers. The Company does not anticipate that it will execute the commitment letter unless it has entered into satisfactory settlements with the creditors to the Transeastern JV including, but not limited to, settlements with the senior lenders, the mezzanine lenders and land bankers to the Transeastern JV. If the commitment letter is executed by TOUSA, the parties have until July 31, 2007 to execute definitive documentation of the financing before the commitments in the commitment letter terminate.
TOUSA does not expect to provide further updates on the expiration time of the commitment letter unless it is signed by the Company or it expires.
More information regarding the official reports (8-K and 10-K Forms) are filed with the Securities and Exchange Commission and are available at www.sec.gov and our affiliate TOUSA's website www.tousa.com