8-KMaterial AgreementsFinancial EventsOther Events+1

HORTON D R INC /DE/ 8-K Report, Material Agreement (Feb 1, 2006)

Filed February 1, 2006For Securities:DHI

Summary

This 8-K filing from D.R. Horton, Inc. (DHI) on February 1, 2006, primarily reports on two key events. First, on January 30, 2006, DHI Mortgage Company, Ltd., a subsidiary, amended its credit agreement, increasing its credit facility from $300 million to $450 million. This facility matures on April 7, 2006, and is secured by mortgage loans held for sale, not guaranteed by the parent company or its note guarantors. Second, the filing details the results of D.R. Horton's 2006 Annual Meeting of Stockholders held on January 26, 2006. Key outcomes include the election of seven directors to the Board, approval of the 2006 Stock Incentive Plan, and a significant increase in authorized common stock to one billion shares. Notably, a shareholder proposal regarding an energy efficiency assessment was not approved.

Key Highlights

  • 1DHI Mortgage's credit facility increased by $150 million to $450 million.
  • 2The increased credit facility matures on April 7, 2006.
  • 3The credit facility is secured by mortgage loans held for sale and is not guaranteed by D.R. Horton, Inc.
  • 4Seven directors were elected to the D.R. Horton, Inc. Board of Directors.
  • 5The D.R. Horton, Inc. 2006 Stock Incentive Plan was approved by stockholders.
  • 6The number of authorized common stock shares was increased to one billion.
  • 7A shareholder proposal for an energy efficiency assessment was not approved.

Frequently Asked Questions

The increase in the credit facility by $150 million to $450 million provides DHI Mortgage, a subsidiary, with greater access to funds. This can be important for financing operations, particularly for acquiring and holding mortgage loans for sale, which is a core part of a homebuilder's business.

The credit facility is extended to DHI Mortgage Company, Ltd., a subsidiary. It is secured by certain mortgage loans held for sale by that subsidiary and is explicitly stated as not being guaranteed by the parent company, D.R. Horton, Inc., or any of its note guarantors. This means the parent company is not directly liable for this specific debt.

The 2006 Annual Meeting saw the election of all seven nominated directors, the approval of the company's 2006 Stock Incentive Plan, and a significant increase in the authorized number of common stock shares to one billion. These actions reflect the company's governance and future equity plans.

Yes, a shareholder proposal concerning an energy efficiency assessment was put to a vote and was not approved by the stockholders.