8-KMaterial AgreementsExhibits & Filings

HORTON D R INC /DE/ 8-K Report, Material Agreement (Jul 3, 2007)

Filed July 3, 2007For Securities:DHI

Summary

D.R. Horton, Inc. (DHI) announced a significant amendment to its asset-backed commercial paper facility (CP Facility) through its subsidiary, CH Funding LLC. Effective June 29, 2007, the facility's maximum capacity was reduced from $800 million to $600 million. This reduction may indicate a strategic shift or a response to evolving market conditions in the securitization market. Despite the reduced capacity, the annual extension date for the CP Facility has been extended to June 27, 2008, providing continued access to funding for at least another year. The overall expiration date remains June 27, 2009, subject to annual renewal of its backup liquidity feature. Importantly, this facility is secured by mortgage loans held for sale and is not guaranteed by D.R. Horton or its homebuilding debt guarantors, mitigating direct corporate risk.

Key Highlights

  • 1CH Funding LLC, a subsidiary of D.R. Horton, entered into a Second Omnibus Amendment to its CP Facility.
  • 2The maximum capacity of the CP Facility was reduced from $800 million to $600 million.
  • 3The annual extension date for the CP Facility was extended to June 27, 2008.
  • 4The CP Facility's expiration date remains June 27, 2009, subject to annual renewal.
  • 5The CP Facility is secured by mortgage loans held for sale, not by D.R. Horton Inc. or its homebuilding debt guarantors.
  • 6This amendment impacts asset-backed securitization activities and does not carry a direct corporate guarantee from the parent company.

Frequently Asked Questions

The CP Facility is an asset-backed commercial paper facility that CH Funding LLC, a subsidiary of D.R. Horton, Inc., uses. It is secured by certain mortgage loans held for sale and is utilized to issue asset-backed commercial paper in the market.

The filing does not explicitly state the reason for the reduction in maximum capacity from $800 million to $600 million. This could be due to various factors, including changes in market conditions, the company's funding needs, or strategic adjustments.

No, the filing clarifies that the CP Facility is secured by mortgage loans held for sale and is not guaranteed by D.R. Horton, Inc. or any of the guarantors of its homebuilding debt. Therefore, the direct financial risk to the parent company is limited.

Extending the annual extension date to June 27, 2008, means that the facility has been re-evaluated and parties involved have agreed to continue its availability for at least another year. This provides D.R. Horton's subsidiary with continued access to short-term funding through the securitization market.