8-KMaterial AgreementsExhibits & Filings

HORTON D R INC /DE/ 8-K Report, Material Agreement (Feb 25, 2014)

Filed February 25, 2014For Securities:DHI

Summary

D.R. Horton, Inc. (DHI) announced the completion of a public offering for $500 million in aggregate principal amount of 3.750% Senior Notes due 2019. The company received net proceeds of approximately $497 million after underwriting discounts and commissions. These notes are general unsecured obligations of the company and are guaranteed by substantially all of its current homebuilding subsidiaries. This offering provides D.R. Horton with significant capital, which can be used for general corporate purposes, including funding operations and potential future growth initiatives. Investors in these notes are subject to the company's credit risk, with specific provisions for optional redemption and a change of control clause that could trigger a purchase offer to noteholders under certain conditions. The notes are listed on the New York Stock Exchange, indicating a level of market transparency and liquidity.

Key Highlights

  • 1Completed a public offering of $500 million in 3.750% Senior Notes due 2019.
  • 2Received net proceeds of approximately $497 million from the offering.
  • 3Notes are guaranteed by substantially all of D.R. Horton's current homebuilding subsidiaries.
  • 4Interest rate is 3.750% per annum, payable semi-annually.
  • 5Maturity date for the notes is March 1, 2019.
  • 6Includes provisions for optional redemption and a change of control offer to purchase.
  • 7Notes are approved for listing on the New York Stock Exchange.

Frequently Asked Questions

This Form 8-K filing announces the completion of D.R. Horton's public offering of $500 million in Senior Notes due 2019 and details the material terms of this debt issuance.

The filing states the net proceeds of $497 million are intended for general corporate purposes. While not specified, this typically includes funding operations, working capital, investments, and potential acquisitions.

The notes carry a 3.750% interest rate, mature in March 2019, and are unsecured general obligations of D.R. Horton, guaranteed by its subsidiaries. Key risks include the company's creditworthiness, potential for interest rate fluctuations affecting the value of the notes, and the possibility of early redemption by the company. There's also a 'change of control' provision that could require the company to repurchase the notes if specific events occur.

The notes have been approved for listing on the New York Stock Exchange (NYSE), which provides a public market for trading.