Summary
This 8-K filing announces a significant amendment to D.R. Horton, Inc.'s (DHI) Master Repurchase Agreement through its subsidiary, DHI Mortgage Company, Ltd. The Fifth Amendment to the Repurchase Facility, entered into on March 4, 2011, with U.S. Bank National Association, effectively extends the facility's term to March 4, 2012, or earlier termination. This agreement is crucial for providing financing and liquidity to DHI Mortgage, enabling it to purchase eligible loans. The facility has a committed sum of $100 million, and importantly, it is not guaranteed by the parent company or its homebuilding debt guarantors, indicating a degree of separation for this specific financing arrangement.
Key Highlights
- 1DHI Mortgage Company, Ltd. (a subsidiary of D.R. Horton, Inc.) amended its Master Repurchase Agreement with U.S. Bank National Association.
- 2The Fifth Amendment extends the Repurchase Facility's term to March 4, 2012, or earlier termination.
- 3The Repurchase Facility provides financing and liquidity to DHI Mortgage for the purchase of eligible loans.
- 4The total committed sum under the Repurchase Facility is $100 million.
- 5Amounts outstanding under the Repurchase Facility are NOT guaranteed by D.R. Horton, Inc. or its homebuilding debt guarantors.
- 6The amendment includes provisions for DHI Mortgage to make distributions, provided consolidated tangible net worth remains at or above $75 million and liquidity is no less than $45 million.
Frequently Asked Questions
The primary purpose of the Repurchase Facility is to provide financing and liquidity to DHI Mortgage Company, Ltd. by facilitating purchase transactions where DHI Mortgage transfers eligible loans to buyers in exchange for funds.
The Buyer's Committed Sum under the Repurchase Facility is $100 million.
No, amounts outstanding under the Repurchase Facility are not guaranteed by D.R. Horton, Inc. or any of its subsidiaries that guarantee their homebuilding debt. This means the parent company is not directly liable for this specific financing.
Under the Fifth Amendment, DHI Mortgage can make distributions as long as such distributions do not cause a default or event of default. Additionally, DHI Mortgage's consolidated tangible net worth must not fall below $75 million, and its liquidity must remain at or above $45 million at all times.