Standard Pacific Moves to Shore Up Cash Position

Standard Pacific announced a series of three financial moves Tuesday that it says will position the company to aggressively buy discounted land during the market's slowdown. One of the three moves increases Standard Pacific's cash holdings, but it also ups MatlinPatterson Global Advisors' ante in the company it rescued from the brink of bankruptcy and, at the same time, dilutes the company's stock. As part of the MatlinPatterson investment in Standard Pacific two and a half years ago, MatlinPatterson had the ability to receive 40 million shares of the company's stock for no cash. Instead, a deal was struck to sell MatlinPatterson 89 million shares in return for $187.5 million in cash. CEO Ken Campbell said Tuesday morning that the deal equates to selling MatlinPatterson stock for $4.69 a share, more than the stock has been trading for recently. The downside, of course, is that it dilutes other shareholders' pieces of the company.

Click here to view this article from its source.