Summary
This 8-K filing from D.R. Horton, Inc. (DHI) reports on material definitive agreements entered into by its subsidiaries on March 24, 2006. Specifically, CH Funding, LLC, a subsidiary, amended its Master Repurchase Agreement (CP Facility) to increase its borrowing capacity from $500 million to $650 million, with the facility expiring on June 29, 2006. This facility is secured by mortgage loans held for sale and is not guaranteed by the parent company or its homebuilding debt guarantors. Additionally, DHI Mortgage Company, Ltd., another subsidiary, amended its Amended and Restated Credit Agreement (Credit Facility) to raise its capacity from $450 million to $600 million, with a term extending to April 7, 2006. Similar to the CP Facility, this Credit Facility is secured by mortgage loans held for sale and is not guaranteed by D.R. Horton, Inc. These actions indicate an expansion of the company's financing capabilities for its mortgage operations.
Key Highlights
- 1D.R. Horton's subsidiary, CH Funding, LLC, increased its borrowing capacity under the CP Facility from $500 million to $650 million.
- 2The amended CP Facility has an expiration date of June 29, 2006.
- 3DHI Mortgage Company, Ltd. increased its borrowing capacity under the Credit Facility from $450 million to $600 million.
- 4The Credit Facility has a term extending through April 7, 2006.
- 5Both facilities are secured by mortgage loans held for sale.
- 6Neither the CP Facility nor the Credit Facility are guaranteed by D.R. Horton, Inc. or its homebuilding debt guarantors.
- 7These amendments are considered material definitive agreements for D.R. Horton's subsidiaries.