8-KMaterial AgreementsFinancial Events

HORTON D R INC /DE/ 8-K Report, Material Agreement (Nov 1, 2005)

Filed November 1, 2005For Securities:DHI

Summary

D.R. Horton, Inc. (DHI) filed an 8-K on November 1, 2005, detailing an amendment to its subsidiary's credit facility. Specifically, DHI Mortgage Company, Ltd. entered into a sixth amendment to its Amended and Restated Credit Agreement with U.S. Bank National Association and other lenders. This amendment's primary purpose was to temporarily extend a portion of the credit facility's available capacity. The amendment effectively maintained the credit facility's capacity at $450 million from October 28, 2005, through November 30, 2005. This was a modification of a previously scheduled decrease from $675 million to $450 million on October 28, 2005, and then to $300 million on November 1, 2005. The capacity is set to reduce to $300 million starting December 1, 2005, with the possibility of utilizing a $150 million accordion feature. The credit facility is secured by mortgage loans held for sale and is not guaranteed by the parent company, D.R. Horton, Inc.

Key Highlights

  • 1DHI Mortgage Company, Ltd., a subsidiary of D.R. Horton, entered into the Sixth Amendment to its Amended and Restated Credit Agreement.
  • 2The amendment, effective October 28, 2005, temporarily extends the available capacity of the credit facility.
  • 3The credit facility's capacity will remain at $450 million from October 28, 2005, through November 30, 2005.
  • 4This capacity was previously scheduled to decrease to $300 million on November 1, 2005.
  • 5The credit facility capacity is set to decrease to $300 million starting December 1, 2005, subject to a $150 million accordion feature.
  • 6The credit facility is secured by mortgage loans held for sale.
  • 7The credit facility is not guaranteed by the parent company, D.R. Horton, Inc., or its note guarantors.

Frequently Asked Questions

The primary purpose of the Sixth Amendment is to temporarily extend a portion of the credit facility's available capacity, maintaining it at $450 million from October 28, 2005, through November 30, 2005, instead of allowing it to decrease as originally scheduled.

The credit facility had a capacity of $675 million. Under the Sixth Amendment, it will remain at $450 million from October 28, 2005, through November 30, 2005. Beginning December 1, 2005, the capacity will reduce to $300 million, with a potential $150 million accordion feature.

No, the credit facility is a subsidiary obligation of DHI Mortgage Company, Ltd. It is secured by mortgage loans held for sale and is not guaranteed by D.R. Horton, Inc. or any of its note guarantors.

The capacity was scheduled to decrease to $450 million on October 28, 2005, and then to $300 million on November 1, 2005. The Sixth Amendment keeps it at $450 million until November 30, 2005, after which it will decrease to $300 million starting December 1, 2005.