Summary
D.R. Horton, Inc. (DHI) announced a significant amendment to its master repurchase facility through its subsidiary, DHI Mortgage Company, Ltd. This Third Amendment, effective September 23, 2016, increases the total commitment amount under the facility to $800 million. This enhancement is designed to provide increased financing and liquidity to DHI Mortgage, supporting its purchase transactions of eligible loans. The amendment introduces a tiered availability structure. From September 23, 2016, to November 21, 2016, the available committed sums are raised to $700 million. Subsequently, the committed sums will adjust to $550 million during the last five days of any fiscal quarter and the first twenty-five days of the following fiscal quarter. Importantly, D.R. Horton, Inc. and its homebuilding debt guarantors are not providing guarantees for amounts outstanding under this repurchase facility.
Key Highlights
- 1DHI Mortgage Company, Ltd. entered into a Third Amendment to its Second Amended and Restated Master Repurchase Agreement.
- 2The total commitment amount under the repurchase facility has been increased to $800 million.
- 3The amendment is intended to enhance financing and liquidity for DHI Mortgage's loan purchase transactions.
- 4Available committed sums are $700 million from September 23, 2016, to November 21, 2016.
- 5After November 21, 2016, committed sums will be $550 million, subject to a quarterly cycle.
- 6D.R. Horton, Inc. and its homebuilding debt guarantors are not providing guarantees for this facility.
- 7The amendment facilitates purchase transactions where DHI Mortgage transfers eligible loans against funds from buyers.