TOUSA, Inc.

Hollywood, FL: (Jun-29-07) A settlement agreement was entered into by TOUSA, Inc. and Transeastern JV, wherein TOUSA, Inc. agreed to settle with the senior and junior mezzanine lenders to the Transeastern JV, including the senior lenders, the mezzanine lenders, the JV partner and land bankers. The company expects to close the global settlement on or about July 31, 2007, subject to closing conditions. The global settlement would be financed by TOUSA's issuance of new equity and debt securities including a new $500 million senior secured credit facility underwritten by Citibank. The full amount of the debt to the Transeastern JV senior secured lenders, $400 million plus approximately $22.7 million of interest will be repaid in cash resolving all claims of the Transeastern JV senior secured lenders. The settlement would release TOUSA from its potential obligations to the Transeastern JV's mezzanine lenders, resolving the charges. [CNN NEWS: LENDERS SETTLEMENT]

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Published on Jul-2-07