8-KMaterial AgreementsFinancial EventsExhibits & Filings

HORTON D R INC /DE/ 8-K Report, Material Agreement (Nov 5, 2012)

Filed November 5, 2012For Securities:DHI

Summary

This Form 8-K filing by D.R. Horton, Inc. (DHI) reports on an amendment to its Credit Agreement, effective November 1, 2012. The primary focus is the significant expansion of its revolving credit facility, increasing the total commitment from $500,000,000 to $1,000,000,000. This expansion was achieved by adding five new lenders, each committing $100,000,000, while The Royal Bank of Scotland plc reduced its commitment. This increased borrowing capacity suggests D.R. Horton is positioning itself for future growth and potential acquisitions, or to manage existing operational needs and market conditions during a period of recovery in the housing sector. Investors should view this as a positive development, indicating improved access to capital and a stronger financial footing for the company.

Key Highlights

  • 1D.R. Horton amended its Credit Agreement, effective November 1, 2012.
  • 2The aggregate Revolving Credit Facility Limit was increased from $500,000,000 to $1,000,000,000.
  • 3Five new lenders were added to the credit facility, each with a $100,000,000 commitment.
  • 4The Royal Bank of Scotland plc's commitment was reduced from $125,000,000 to $100,000,000.
  • 5The total amount of outstanding Revolving Credit Commitments after the amendment will be $600,000,000.
  • 6This filing is also incorporated into the section regarding the creation of a direct financial obligation.

Frequently Asked Questions

The main purpose of this filing is to report an amendment to D.R. Horton's Credit Agreement, specifically detailing the significant increase in the company's revolving credit facility limit and the addition of new lenders.

The amendment doubles the company's aggregate Revolving Credit Facility Limit from $500,000,000 to $1,000,000,000, providing substantially more access to capital.

The expansion of the credit facility suggests that D.R. Horton is proactively strengthening its financial position, likely to support future growth opportunities, such as acquisitions or increased operational capacity, and to ensure liquidity during potentially evolving market conditions.

Yes, The Royal Bank of Scotland plc's commitment was reduced from $125,000,000 to $100,000,000, while five new lenders have joined the agreement, collectively adding significant new credit.