8-KMaterial AgreementsFinancial EventsExhibits & Filings

HORTON D R INC /DE/ 8-K Report, Material Agreement (Aug 13, 2013)

Filed August 13, 2013For Securities:DHI

Summary

D.R. Horton, Inc. (DHI) announced on August 13, 2013, that it has amended its Credit Agreement, resulting in a significant increase in its revolving credit facility. The amendment, effective August 8, 2013, expands the aggregate amount of revolving credit commitments by $125,000,000, raising the total facility from $600,000,000 to $725,000,000. This move provides the company with enhanced financial flexibility and greater borrowing capacity, which is crucial for its homebuilding operations and strategic growth initiatives. Furthermore, the amendment extends the termination date of the revolving credit facility from its previous term to September 7, 2018. This longer maturity provides D.R. Horton with a more stable and predictable financing source over an extended period. Modifications to pricing terms were also made, though specific details are not provided in this filing summary. Investors should view this as a positive development, indicating the company's ability to secure favorable financing and its commitment to strengthening its financial position.

Key Highlights

  • 1Increased Revolving Credit Facility: Expanded aggregate revolving credit commitments by $125,000,000, bringing the total facility to $725,000,000.
  • 2Extended Termination Date: The revolving credit facility maturity date has been extended to September 7, 2018.
  • 3Enhanced Financial Flexibility: The increased credit line provides DHI with greater financial resources for operations and strategic investments.
  • 4Improved Capital Structure: Securing longer-term financing indicates confidence from lenders and strengthens the company's financial foundation.
  • 5Material Definitive Agreement: The filing details a significant amendment to the company's existing credit agreement, indicating a material change in its financing arrangements.
  • 6Incorporation by Reference: Key details regarding the credit agreement and its amendment are provided as exhibits to the filing.

Frequently Asked Questions

The primary impact is a $125,000,000 increase in D.R. Horton's revolving credit facility, raising the total to $725,000,000. Additionally, the maturity date of the credit facility has been extended to September 7, 2018, and certain pricing terms have been modified.

The increased credit line provides D.R. Horton with greater financial flexibility to fund its homebuilding operations, manage working capital, and pursue strategic growth opportunities. The extended maturity date offers a more stable financing environment over the long term.

The key parties are D.R. Horton, Inc. (the Borrower), The Royal Bank of Scotland plc (as Administrative Agent, an Issuing Bank, and a Lender), and the other Lenders participating in the credit facility.

The full details are contained in Amendment No. 2 to the Credit Agreement, which is attached as Exhibit 10.1 to the Form 8-K filing. The Credit Agreement itself, as amended, is attached as Annex I to Amendment No. 2 and is provided as Exhibit 10.2.