WCI raises $175M

BONITA SPRINGS — WCI Communities completed a $175 million capital raise, the latest move in its continuing recovery from the sour homebuilding market.

The Bonita Springs-based homebuilder, once one of the more prolific luxury builders in the region, announced the capital raise late yesterday. It includes a $125 million note due in 2017 and $50 million of additional equity, according to a release. The funds will be used both to pay off the firm's existing loan and for growth within Florida, the company says.

Investment funds managed by Monarch Alternative Capital LP and Stonehill Capital Management LLC provided the debt capital, while existing shareholders provided additional equity through a rights offering, the company says. The group of existing shareholders includes Monarch and Stonehill.

“These investments support the next phase of WCI's progression as we continue to execute the elements of our growth plan, including strategic land acquisitions in key Florida markets to expand our portfolio of lifestyle communities,” WCI president and CEO David Fry says in a release. “The Florida real estate market has shown signs of improved health, and we have exceeded sales projections in several of our communities through the first part of this year. The company is on target to increase its closings and homebuilding revenue by more than 200% in 2012.”

WCI emerged from bankruptcy in September 2009 and has since been in comeback mode. In fact, WCI closed its 100th home sale of the year in the first quarter, when the firm reported year-to-date sales were up 181% over the 2011 first quarter.

WCI builds homes in 23 neighborhoods. It builds single-family homes, multifamily properties and condos. Prices range from the mid-$100,000s to just under $1 million.