8-KMaterial AgreementsOther EventsExhibits & Filings

HORTON D R INC /DE/ 8-K Report, Material Agreement (Dec 5, 2017)

Filed December 5, 2017For Securities:DHI

Summary

D.R. Horton, Inc. (DHI) announced the completion of a public offering of $400 million in aggregate principal amount of 2.550% Senior Notes due 2020 on December 5, 2017. The company received net proceeds of approximately $398.3 million from this offering, which will be used for general corporate purposes. These notes are unsecured general obligations of the company and are guaranteed by substantially all of its current homebuilding subsidiaries, providing investors with a degree of security. The offering introduces new debt for DHI, impacting its capital structure. The notes mature on December 1, 2020, and carry a fixed interest rate of 2.550% per annum, payable semi-annually. The filing also outlines provisions for optional redemption by the company and a mandatory repurchase offer triggered by a change of control coupled with a ratings downgrade, offering specific protections to noteholders under certain circumstances.

Key Highlights

  • 1Completed a $400 million public offering of 2.550% Senior Notes due 2020.
  • 2Received net proceeds of approximately $398.3 million from the note offering.
  • 3Notes mature on December 1, 2020.
  • 4Interest rate on the notes is 2.550% per annum, payable semi-annually.
  • 5Notes are guaranteed by substantially all of D.R. Horton's current homebuilding subsidiaries.
  • 6Includes provisions for optional redemption by D.R. Horton.
  • 7Mandatory repurchase offer is triggered by a change of control and a ratings downgrade.

Frequently Asked Questions

The company has stated that the net proceeds from the offering will be used for general corporate purposes. This typically includes funding operations, investments, or future acquisitions.

The notes have a principal amount of $400 million, mature on December 1, 2020, and carry a fixed interest rate of 2.550% per annum, payable semi-annually on June 1 and December 1. They are general unsecured obligations of D.R. Horton and are guaranteed by most of its homebuilding subsidiaries.

If a change of control occurs for D.R. Horton and the notes are simultaneously downgraded by rating agencies, the company is obligated to offer to repurchase the notes from holders at 101% of their principal amount, plus accrued interest.

The notes are general unsecured obligations of the company and rank senior to any future debt that is expressly subordinated to these notes. They rank equally with all other existing and future unsecured, unsubordinated debt of D.R. Horton.