Standard Pacific Plans to Raise $40 Million

Standard Pacific, a Costa Mesa-based home builder, plans to raise approximately $40 million through an issue of 1.5 million investment units in January to help defray the capital gains tax that its shareholders will be obliged to pay after the firm converts to a master limited partnership later this month.

At the same time, an individual investor will be selling 300,000 units in the company, according to a registration statement filed with the Securities and Exchange Commission.

Standard Pacific is converting from a corporation to a publicly traded master limited partnership to avoid paying corporate state and federal income taxes.