8-KMaterial AgreementsFinancial EventsShareholder Matters+2

HORTON D R INC /DE/ 8-K Report, Material Agreement (Jun 20, 2008)

Filed June 20, 2008For Securities:DHI

Summary

On June 20, 2008, D.R. Horton, Inc. (DHI) announced the consummation of an exchange offer for its 9.75% Senior Subordinated Notes due 2010 (Existing Notes). The company successfully exchanged approximately 85.27% ($96,777,000 principal amount) of the outstanding Existing Notes for an equal principal amount of new 9.75% Senior Notes due 2010 (New Notes). This exchange offer was part of a broader consent solicitation to amend the indenture governing the Existing Notes. The New Notes are general, unsecured obligations of the company and rank equally with other unsecured unsubordinated debt, but senior to any remaining Existing Notes. The transaction was structured to comply with registration exemptions, and D.R. Horton did not incur additional debt or receive proceeds from the issuance of the New Notes. This exchange effectively refinanced a significant portion of its near-term debt obligations, indicating a proactive approach to managing its capital structure amidst challenging market conditions.

Key Highlights

  • 1D.R. Horton completed an exchange offer for its 9.75% Senior Subordinated Notes due 2010.
  • 2Approximately 85.27% ($96,777,000) of the outstanding Existing Notes were exchanged for new 9.75% Senior Notes due 2010.
  • 3The New Notes mature on September 15, 2010, with an interest rate of 9.75% per annum.
  • 4Holders who tendered notes early also received a consent payment of $10 per $1,000 principal amount.
  • 5The exchange was consummated on June 20, 2008, and no proceeds were received by the company from the issuance of the New Notes.
  • 6The New Notes are senior obligations to the remaining outstanding Existing Notes.
  • 7Amendments to the Existing Notes Indenture, approved via consent solicitation, became operative upon the consummation of the exchange offer.

Frequently Asked Questions

The main purpose of this 8-K filing was to report the consummation of D.R. Horton's exchange offer, where a significant portion of its 9.75% Senior Subordinated Notes due 2010 were exchanged for new 9.75% Senior Notes due 2010.

Approximately $96,777,000, or 85.27%, of the outstanding 9.75% Senior Subordinated Notes due 2010 were exchanged. The new 9.75% Senior Notes due 2010 have the same maturity date and interest rate but rank senior to the remaining subordinated notes.

No, D.R. Horton did not receive any proceeds from the issuance of the New Notes. The exchange was for an equal principal amount of outstanding debt, effectively refinancing existing obligations rather than raising new capital.

Approximately $16,723,000 aggregate principal amount of the Existing Notes remains outstanding. These remaining notes are now subject to amended provisions in their indenture, which became operative upon the consummation of the exchange offer.