Summary
D.R. Horton, Inc. (DHI) announced on May 1, 2012, the successful completion of a public offering of $350 million in aggregate principal amount of 4.750% Senior Notes due 2017. The company received net proceeds of approximately $347.4 million from this offering, which will be used to fund its operations and for general corporate purposes. These notes are unsecured obligations of the company and are guaranteed by substantially all of its homebuilding subsidiaries. The issuance of these notes provides DHI with additional capital to support its business activities. Key terms include semi-annual interest payments and a maturity date of May 15, 2017. The offering includes provisions for early redemption at the company's discretion and a change of control clause that may trigger a repurchase offer to noteholders under specific conditions. Standard events of default are also outlined in the indenture.
Key Highlights
- 1Completion of a $350 million public offering of 4.750% Senior Notes due 2017.
- 2Net proceeds of approximately $347.4 million received from the offering.
- 3Notes mature on May 15, 2017.
- 4Interest rate on the notes is 4.750% per annum, payable semi-annually.
- 5Notes are general unsecured obligations of D.R. Horton, Inc.
- 6Substantially all of the company's homebuilding subsidiaries are guarantors of the notes.
- 7Includes provisions for optional redemption and a change of control repurchase offer.