8-KMaterial AgreementsFinancial EventsExhibits & Filings

HORTON D R INC /DE/ 8-K Report, Material Agreement (Mar 8, 2012)

Filed March 8, 2012For Securities:DHI

Summary

D.R. Horton, Inc. (DHI) announced an Eighth Amendment to its Master Repurchase Agreement with DHI Mortgage Company, Ltd. and U.S. Bank National Association, effective March 2, 2012. This amendment primarily serves to provide continued financing and liquidity to DHI Mortgage for its loan purchase transactions. The Repurchase Facility has a committed capacity of $180 million, with an additional $45 million discretionary facility available, totaling $225 million. The terms include specific pricing rates based on Libor, commitment fees, and restrictions on certain loan types within the facility. The amendment also outlines conditions for reducing or terminating the facility, with a minimum commitment of $100 million if not terminated entirely. This filing is significant for investors as it indicates the ongoing operational financing structure for DHI's mortgage subsidiary. The amendment suggests a stable, albeit amended, financing arrangement that supports DHI Mortgage's ability to conduct its business. The specific terms, including interest rates, fees, and facility limits, provide insight into the cost and availability of capital for this segment of D.R. Horton's operations. The expiration date of March 3, 2013, sets a near-term horizon for this financing agreement.

Key Highlights

  • 1D.R. Horton's subsidiary, DHI Mortgage, entered into an Eighth Amendment to its Master Repurchase Agreement with U.S. Bank National Association, effective March 2, 2012.
  • 2The primary purpose of the agreement is to provide financing and liquidity to DHI Mortgage for its loan purchase transactions.
  • 3The Repurchase Facility has a Committed Sum of $180 million, with an additional Discretionary Facility Amount of $45 million, totaling $225 million.
  • 4Advances under the facility will carry a Pricing Rate based on the Libor Rate plus a Libor Margin, with minimum rates of 2.75% on the Committed Sum and 3.25% on the Discretionary Facility Amount.
  • 5A commitment fee of 0.25% per annum is charged on the unused portion of the Committed Sum, excluding the Discretionary Facility Amount.
  • 6The amendment includes provisions for reducing or terminating the facility, with a minimum Committed Sum of $100 million if not fully terminated.
  • 7The Repurchase Facility has a term expiring on March 3, 2013, or earlier under certain termination conditions.

Frequently Asked Questions

The main purpose of the Eighth Amendment is to continue providing financing and liquidity to DHI Mortgage Company, Ltd., a subsidiary of D.R. Horton, Inc., for its transactions where DHI Mortgage transfers eligible loans to buyers in exchange for funds.

The Repurchase Facility has a committed capacity of $180 million, with an additional discretionary capacity of $45 million, bringing the total potential capacity to $225 million.

No, the amounts outstanding under the Repurchase Facility are not guaranteed by D.R. Horton, Inc. or any of its subsidiaries that guarantee their homebuilding debt.

The Repurchase Facility has a term that expires on March 3, 2013, or earlier if the Buyers’ Commitments are terminated under specific conditions outlined in the agreement.