Summary
D.R. Horton, Inc. (DHI) has filed an 8-K report detailing a material amendment to its Master Repurchase Agreement. Specifically, on February 28, 2006, its subsidiary CH Funding LLC entered into the Tenth Omnibus Amendment to its existing CP Facility, which has a total capacity of $500 million and matures on June 29, 2006. This amendment primarily concerns the modification of operative documents related to the facility. Investors should note that the CP Facility is secured by mortgage loans held for sale and is not guaranteed by D.R. Horton, Inc. or its homebuilding debt guarantors. The facility allows for the issuance of asset-backed commercial paper. The amendment itself did not alter the available capacity under the facility, indicating continuity in its financing structure.
Key Highlights
- 1D.R. Horton's subsidiary, CH Funding LLC, executed the Tenth Omnibus Amendment to its Master Repurchase Agreement (CP Facility) on February 28, 2006.
- 2The CP Facility has a total capacity of $500 million.
- 3The current amendment extends the facility's availability through June 29, 2006.
- 4The amendment focuses on modifying operative documents of the CP Facility, not on changing its overall capacity.
- 5The CP Facility is secured by mortgage loans held for sale.
- 6Crucially, the CP Facility is not guaranteed by D.R. Horton, Inc. or its homebuilding debt guarantors.
- 7This facility is used to back asset-backed commercial paper issued by multi-seller conduits.