8-KMaterial AgreementsFinancial EventsExhibits & Filings

HORTON D R INC /DE/ 8-K Report, Material Agreement (Mar 4, 2013)

Filed March 4, 2013For Securities:DHI

Summary

D.R. Horton, Inc. (DHI) announced on March 4, 2013, through an 8-K filing, the entry into an Amended and Restated Master Repurchase Agreement for its subsidiary, DHI Mortgage Company, Ltd. This agreement, effective March 1, 2013, with U.S. Bank National Association as the buyer, administrative agent, and syndication agent, is designed to provide financing and liquidity for DHI Mortgage by facilitating the purchase of eligible loans. The facility has a maximum commitment of $300 million, with an accordion feature that allows for an increase up to $400 million. This agreement replaces and amends a previous Master Repurchase Agreement from 2008 and its subsequent amendments. It's important for investors to note that the amounts outstanding under this repurchase facility are not guaranteed by the parent company, D.R. Horton, Inc., or its other subsidiaries that guarantee homebuilding debt.

Key Highlights

  • 1DHI Mortgage Company, Ltd. entered into an Amended and Restated Master Repurchase Agreement with U.S. Bank National Association, effective March 1, 2013.
  • 2The agreement's primary purpose is to provide financing and liquidity to DHI Mortgage through the transfer of eligible loans.
  • 3The Repurchase Facility has a base commitment amount of $300 million, with an accordion feature that can increase it to $400 million.
  • 4This new agreement supersedes and amends the previous Master Repurchase Agreement dated March 27, 2008, and its nine subsequent amendments.
  • 5Amounts outstanding under the Repurchase Facility are not guaranteed by D.R. Horton, Inc. or its homebuilding debt guaranteeing subsidiaries.
  • 6The term of the Repurchase Facility extends through March 1, 2014, or until termination by buyers or legal order.
  • 7The filing also incorporates by reference an Amended and Restated Custody Agreement between DHI Mortgage and U.S. Bank.

Frequently Asked Questions

The main purpose is to provide DHI Mortgage Company, Ltd. with financing and liquidity by allowing it to transfer eligible loans to buyers in exchange for funds. This facility helps manage DHI Mortgage's loan portfolio and operational cash flow.

The facility has a maximum aggregate commitment amount of $300 million. It also includes an accordion feature, which allows for the commitment to be increased up to $400 million under certain conditions, such as obtaining additional commitments from existing or new buyers.

No, the filing explicitly states that amounts outstanding under this Repurchase Facility are not guaranteed by D.R. Horton, Inc. or any of its subsidiaries that guarantee homebuilding debt. This means the parent company's balance sheet is not directly liable for these specific obligations.

The Repurchase Facility has a term that ends on the earlier of March 1, 2014, or the date when the buyers' commitments are terminated, either voluntarily by the buyers, by order of a governmental authority, or by operation of law.