8-KMaterial AgreementsFinancial EventsExhibits & Filings

HORTON D R INC /DE/ 8-K Report, Material Agreement (Sep 26, 2018)

Filed September 26, 2018For Securities:DHI

Summary

D.R. Horton, Inc. (DHI) announced through an 8-K filing on September 26, 2018, that it has entered into Amendment No. 7 to its Credit Agreement. This amendment is significant for investors as it extends the maturity date of its Series A Revolving Credit Facility to September 25, 2023, providing a longer runway for financial flexibility. Additionally, the aggregate revolving credit commitments have been increased to $1.325 billion, enhancing the company's borrowing capacity. This extension and increase in credit facility indicate continued confidence from lenders and provide DHI with greater financial resources to support its ongoing operations, potential acquisitions, or capital expenditures. Investors can view this as a positive development for the company's liquidity and its ability to navigate the housing market.

Key Highlights

  • 1D.R. Horton entered into Amendment No. 7 to its Credit Agreement, effective September 25, 2018.
  • 2The Revolving Credit Facility Termination Date for Series A Revolving Credit Commitments has been extended to September 25, 2023.
  • 3The Aggregate Revolving Credit Commitments have been increased to $1,325,000,000.
  • 4Mizuho Bank, Ltd. is the successor Administrative Agent, an Issuing Bank, and a Lender under the agreement.
  • 5The amendment provides DHI with extended financial flexibility and enhanced borrowing capacity.
  • 6This action is considered a material definitive agreement and a direct financial obligation.
  • 7The full details of Amendment No. 7 are available as an exhibit to the 8-K filing.

Frequently Asked Questions

The primary purpose of Amendment No. 7 is to extend the maturity date of D.R. Horton's Series A Revolving Credit Facility to September 25, 2023, and to increase the total available credit under this facility to $1.325 billion.

The increase in the aggregate revolving credit commitments provides D.R. Horton with greater financial flexibility and access to capital, which can be used for operational needs, strategic investments, or to manage working capital requirements in the housing market.

The key parties involved are D.R. Horton, Inc. (the Borrower), Mizuho Bank, Ltd. (as the successor Administrative Agent, an Issuing Bank, and a Lender), and other Lenders party to the Credit Agreement.

This amendment specifically relates to the company's revolving credit facility, which is a form of debt. While it doesn't necessarily mean more debt is currently drawn, it increases the maximum amount the company *can* borrow, enhancing its borrowing capacity. The actual debt levels will depend on the company's utilization of this facility.