William Lyon Homes' subsidiary closed the private placement of $450 million of 5.875% senior notes due Jan. 31, 2025, to institutional buyers.

William Lyon Homes Inc. used part of the net proceeds to buy the roughly $395.6 million outstanding principal amount of 8.5% senior notes due 2020 in its cash tender offer and consent solicitation. The remaining funds will be used, along with cash on hand, to retire the 2020 notes that remain outstanding.

U.S. Bank NA was the trustee for the 2025 notes, which will pay interest semiannually every Jan. 31 and July 31, starting July 31, 2017.