Summary
D.R. Horton, Inc. (DHI) filed an 8-K on February 5, 2013, to report on the closing of a public offering of senior notes. The company successfully issued $400 million in 3.625% Senior Notes due 2018 and $300 million in 4.750% Senior Notes due 2023, totaling $700 million. This offering, underwritten by J.P. Morgan Securities LLC, was registered under a Form S-3 registration statement and is expected to close on February 5, 2013. The net proceeds from this significant debt financing are intended for general corporate purposes. This move indicates D.R. Horton's strategy to bolster its financial flexibility and potentially fund future growth initiatives or refinance existing debt during a period of economic recovery following the 2008 financial crisis.
Key Highlights
- 1D.R. Horton Inc. completed a public offering of $700 million in senior notes.
- 2The offering consists of $400 million in 3.625% Senior Notes due 2018.
- 3The offering also includes $300 million in 4.750% Senior Notes due 2023.
- 4The notes are issued under indentures with American Stock Transfer & Trust Company as trustee.
- 5J.P. Morgan Securities LLC acted as the underwriter for the offering.
- 6Proceeds from the offering are designated for general corporate purposes.
- 7The offering was registered on Form S-3 and expected to close on February 5, 2013.