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Key takeaways from the call:
During the call, Dan Hedigan, a company representative, discussed the Valencia sale, indicating that it had a lower density and higher price per lot than previous sales. He also provided updates on the Great Park and Valencia projects and mentioned that the San Francisco project is in the early stages of development.
Kim Tobler, another representative, provided information about the senior notes due in 2025, stating that they have a coupon rate of 7.875% and a principal amount of $625 million. She also mentioned that the company is focused on increasing its cash balance and will decide when to refinance the bonds based on the market.
The company also addressed questions about the wide range of fourth-quarter free cash flow guidance, attributing it to timing issues and the potential for sales to slip into the first quarter. They confirmed that if fourth-quarter cash flow is $32 million, $50 million would be pushed to the first quarter. The company also mentioned the renewal of its revolver and confirmed that there is no restriction preventing it from buying back bonds at a discount.
The call concluded with management expressing gratitude and looking forward to the next quarter. The company remains confident in its ability to meet its long-term capital needs.
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