Summary
D.R. Horton, Inc. (DHI) filed an 8-K on December 15, 2006, reporting on a material amendment to its credit facilities. Specifically, on December 13, 2006, its subsidiary CH Funding LLC entered into a First Omnibus Amendment to its Second Amended and Restated Loan Agreement, referred to as the "CP Facility." This amendment primarily adjusted the maximum capacity of the facility. The key change is the reduction of the CP Facility's maximum capacity from $1.2 billion to $800 million. The company stated this adjustment was made to align the facility size with seasonal volume levels. The expiration date of the CP Facility remains June 27, 2009, with a 364-day backup liquidity feature subject to annual renewal. This facility is secured by certain mortgage loans held for sale and is not directly guaranteed by the parent company, D.R. Horton, Inc.
Key Highlights
- 1D.R. Horton's subsidiary, CH Funding LLC, amended its credit facility.
- 2The amendment reduced the maximum capacity of the CP Facility from $1.2 billion to $800 million.
- 3The reduction in facility size is attributed to aligning with seasonal volume levels.
- 4The CP Facility's expiration date remains June 27, 2009.
- 5The facility includes a 364-day backup liquidity feature that requires annual renewal.
- 6The CP Facility is secured by mortgage loans held for sale.
- 7The facility is not guaranteed by the parent company, D.R. Horton, Inc., or its homebuilding debt guarantors.