Attractive conditions in the bank market helped The Ryland Group gain cheaper financing on its new revolving credit facility. The homebuilder was able to shave 25 basis points off its new five-year, $750 million revolver. Pricing on the facility, which is based on the company's credit ratings, is currently LIBOR plus 75 basis points. It replaces a five-year, $500 million revolver priced at LIBOR plus 1%.
"We are happy with the pricing," said Gordon Milne, cfo of the Calif.-based The Ryland Group. The company increased the size of the revolver because of an anticipated increase in homebuilding this summer.
JPMorgan led the new facility and was the lead on the company's previous facility. "They have been good at keeping us up-to-date. Our previous experience with them has been excellent," said Milne.