PACIFIC PARTNERS, LLC
1702 East Highland Avenue
Suite 310
Phoenix, AZ 85016
602-246-8181
Fax: 602-248-0884
August 17, 2000
Via Facsimile
Original via U.S. Mail
Mr. LeRoy C. Hanneman, Jr.
President and Chief Executive Officer
Del Webb Corporation
6001 N. 24th Street
Phoenix, AZ 85016
Dear Mr. Hanneman:
Pacific Partners, LLC has today filed with the Securities and Exchange
Commission a Schedule 13D reporting our ownership of approximately 5.3% of Del
Webb's common stock.
We acquired our shares because we have concluded that there may be a
significant opportunity for realization of increased shareholder value. Although
the Company is the recognized brand name and the leader in the active adult
housing business, we are concerned that shareholder value has not been
maximized. The Company's balance sheet is highly leveraged. Impending debt
maturities and certain restrictive covenants relating to the Company's
indebtedness present liquidity issues and are limiting the Company's financial
flexibility. This, in turn, is not allowing the Company to take advantage of
both present and future opportunities.
In this regard, representatives of Pacific Partners request the
opportunity to meet with you and other appropriate members of Del Webb
management to discuss management's plans to maximize the value of the Company's
recognized brand name and increase shareholder value. We would like to
understand how management intends to address any impending liquidity issues and
delever the Company's balance sheet. Shareholder value cannot be maximized
unless these issues are resolved.
<PAGE>
Mr. LeRoy C. Hanneman, Jr.
Page Two
August 17, 2000
Our counsel will be forwarding directly to you a copy of our Schedule
13D. In the meantime, please call me at the number listed above to set up a time
to meet next week. I am available any time at your convenience.
Very truly yours,
PACIFIC PARTNERS, LLC
By:/s/ William S. Levine
--------------------------
William S. Levine, Manager
