8-KMaterial AgreementsFinancial EventsExhibits & Filings

HORTON D R INC /DE/ 8-K Report, Material Agreement (Mar 4, 2015)

Filed March 4, 2015For Securities:DHI

Summary

D.R. Horton, Inc. (DHI) announced through its subsidiary, DHI Mortgage Company, Ltd., the execution of a Second Amended and Restated Master Repurchase Agreement (Amended Repurchase Facility) effective February 27, 2015. This agreement replaces the previous repurchase facility and is designed to enhance DHI Mortgage's liquidity and financing capabilities. The primary function of this facility is to facilitate the transfer of eligible loans by DHI Mortgage to buyers in exchange for funds, which are then treated as purchased loans. The key development is the increase in the maximum aggregate commitment amount to $400 million, with a potential to expand to $550 million through an accordion feature. Additionally, a temporary increase to $450 million is available during specific fiscal quarter periods, providing further financial flexibility. The facility also benefits DHI Mortgage by reducing the effective interest rate by 0.125% compared to the prior agreement and introduces a new buyer, strengthening its financial structure.

Key Highlights

  • 1DHI Mortgage Company, Ltd., a subsidiary of D.R. Horton, Inc., entered into a Second Amended and Restated Master Repurchase Agreement (Amended Repurchase Facility) on February 27, 2015.
  • 2The new agreement replaces and amends the prior repurchase facility, enhancing DHI Mortgage's financing and liquidity.
  • 3The maximum aggregate commitment under the facility has been increased to $400 million.
  • 4An accordion feature allows for a potential increase of the maximum aggregate commitment to $550 million.
  • 5A temporary increase to $450 million is available during the last five days of any fiscal quarter and the first twenty-five days of the subsequent quarter.
  • 6The effective interest rate paid by DHI Mortgage has been reduced by one-eighth percent (1/8%).
  • 7A new buyer has been added to the facility, diversifying the financing sources.

Frequently Asked Questions

The primary purpose of the Amended Repurchase Facility is to provide financing and liquidity to DHI Mortgage by facilitating purchase transactions where DHI Mortgage transfers eligible loans to buyers in exchange for funds.

The maximum aggregate commitment amount under the Amended Repurchase Facility is $400 million, with an accordion feature that could increase it to $550 million. There is also a temporary increase to $450 million available during specific fiscal quarter periods.

No, amounts outstanding under the Amended Repurchase Facility are not guaranteed by D.R. Horton, Inc. or any of its subsidiaries that guarantee homebuilding debt.

Yes, the Amended Repurchase Facility reduces the effective interest rate paid by DHI Mortgage by one-eighth percent (1/8%) compared to the previous agreement.