Engle Homes Announces: Private Placement of $50 Million of Senior Notes, Early Redemption of Senior Notes Due 2000, and Three Year Unsecured Bank Credit Facility

Business Wire, June 9, 1998

BOCA RATON, Fla.--(BUSINESS WIRE)--June 9, 1998--Engle Homes Inc. (NASDAQ/NMS:ENGL), a national homebuilder with operations in eight states, Tuesday announced it has agreed to sell, in a private placement pursuant to Rule 144A, $50 million of 9 1/4% Series B Senior Notes due 2008.

The closing of the sale of the Notes is expected to occur on or about June 12, 1998.

The company intends to use the net proceeds of the sale of the Notes to redeem the company's 11 3/4% Senior Notes due 2000 and to reduce bank indebtness. To that end, the company also simultaneously announced the call for redemption of the $40 million outstanding principal amount of such 11 3/4% Senior Notes and Tuesday mailed a notice of redemption to redeem the notes on July 9, 1998. In accordance with the terms of the 11 3/4% Senior Notes, the redemption price will be $1,058.75 per $1,000.00 principal amount, plus accrued interest to the redemption date. Interest on the 11 3/4% Senior Notes will cease to accrue on and after July 9, 1998. American Stock Transfer and Trust Company will be the paying agent and will accept all requests for redemption for this transaction.

The company stated that an extraordinary charge of approximately $1.8 million (net of income tax benefit) for the early retirement of the 11 3/4% Senior Notes will be taken in the third quarter of fiscal 1998.

Engle Homes also announced the signing of a three year unsecured $170 million revolving credit agreement. The bank group providing the facility includes Suntrust Bank, South Florida, National Association as agent; NationsBank, N.A. as co-agent; and BankBoston, N.A.; Bank One, Arizona, N.A.; Norwest Bank Colorado, National Association; Guaranty Federal Bank, FSB; Credit Lyonnais Atlanta Agency; and Banque Paribas.

"This facility will result in certain cost savings and should provide Engle Homes the flexibility to take advantage of opportunities for continued expansion in our current markets and for entering new markets through the year 2001," commented David Shapiro, chief financial officer of the company. "This unsecured bank facility is the result of strong relationships Engle Homes has established with the bank group." The credit agreement can be extended for an additional year upon consent of participating banks.

"These three transactions, combined with our recently completed secondary equity offering and debt offering, improves the total capitalization of Engle Homes and provides for the financial security and growth of the company into the next millennium," concluded Alec Engelstein, president and CEO.

Headquartered in Boca Raton, Engle Homes Inc. designs, constructs, markets and sells single-family homes, townhomes, patio homes and condominiums in Florida; Denver; Dallas; Raleigh, N.C.; Atlanta; Phoenix; Virginia and Maryland. The company's financial services subsidiaries provide mortgage banking services, primarily to the purchasers of its homes, and title insurance services. The company's common stock trades on the Nasdaq National Market under the symbol "ENGL."

The 9 1/4% Series B Notes mentioned in the press release have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), and unless so registered, may not be offered or sold except pursuant to an exemption form, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the 9 1/4% Series B Senior Notes in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Act of 1995. Investors are cautioned that actual results may differ substantially from such forward-looking statements. Forward-looking statements involve risks and uncertainties, including but not limited to, changes in general economic conditions, fluctuations in interest rates, increases in raw materials and labor costs, levels of competition and other factors detailed from time to time in the company's filings with the Securities and Exchange Commission.

    CONTACT:  Engle Homes Inc., Boca Raton
               David Shapiro, Vice President Finance
               561/391-4012, ext. 133