Ashton Woods Has Successfully Completed their Capital Restructuring Plan

It is a big day for Ashton Woods as they proudly announce the fact that they have successfully completed their capital restructuring plan. Ashton Woods is headquartered here in Atlanta, and builds in many other real estate markets as well, including Orlando, Dallas, Houston, Phoenix and Tampa. They are a premier builder of energy efficient new homes, both single-family and townhomes. As one of Atlanta’s biggest builders, Ashton Woods is a prominent component of the Atlanta real estate industry. Thus, we are happy to report this exciting news for the home builder. Here’s an overview of the specific details of their restructuring plan for those that are interested. As for home buyers in Atlanta, you can purchase a new Atlanta home from Ashton Woods with the utmost confidence.

In connection with the restructuring plan, all prior defaults under the Company’s senior credit facility and $125 million 9.5% Senior Subordinated Notes due 2015 were either waived or cured. The restructuring plan was designed to align the Company’s capital structure with the current economic environment. The capital restructuring included the following:

• The successful completion of the previously announced private exchange offer and consent solicitation to exchange any and all of its $125 million 9.5% Senior Subordinated Notes due 2015 (the “Old Notes”) for new 11% Senior Subordinated Notes due 2015 (the “New Notes”), related guarantees and Class B membership interests (the “Class B Interests”) in the Company (the “Exchange Offer”);
• The effectiveness of the previously executed amendment to its existing senior credit facility providing access to up to $95 million in borrowing capacity, subject to borrowing base calculations;
• The closing of a $20 million capital investment in the Company by its existing equity holder; and
• The repayment of the previously disclosed bridge loan, under which $1.0 million aggregate principal amount was outstanding at February 23, 2009.

As a result of the tender of 98.64% of the Old Notes in Exchange Offer, the Company now has $64.116 million in aggregate principal amount of New Notes outstanding and $1.7 million aggregate principal amount of Old Notes outstanding.  No interest will accrue on the New Notes for the first three years following the date of issuance.

Holders of Old Notes who participated in the Exchange Offer also received aggregate Class B Interests representing 19.728% of the outstanding equity of the Company.

Way to go Ashton Woods!