8-KMaterial AgreementsFinancial EventsExhibits & Filings

HORTON D R INC /DE/ 8-K Report, Material Agreement (Oct 4, 2019)

Filed October 4, 2019For Securities:DHI

Summary

D.R. Horton, Inc. (DHI) announced on October 4, 2019, a significant amendment to its existing credit agreement, specifically Amendment No. 9, effective October 2, 2019. This amendment is crucial for investors as it enhances the company's financial flexibility and liquidity. Key changes include an extension of the Revolving Credit Facility Termination Date to October 2, 2024, providing a longer-term borrowing runway. Additionally, the Aggregate Revolving Credit Commitments have been increased to $1.59 billion, bolstering the company's immediate access to capital for its operations and growth initiatives.

Key Highlights

  • 1Extended the Revolving Credit Facility Termination Date to October 2, 2024, improving long-term financial planning.
  • 2Increased the Aggregate Revolving Credit Commitments to $1.59 billion, enhancing liquidity.
  • 3Increased the credit agreement's accordion feature to allow for up to $2.5 billion in aggregate commitments, subject to certain conditions.
  • 4This increase can be in the form of additional Revolving Credit Commitments or Incremental Term Loans, offering flexibility.
  • 5Modified pricing for outstanding commitments, borrowings, and letters of credit.
  • 6Mizuho Bank, Ltd. continues as the Administrative Agent, Issuing Bank, and a Lender.

Frequently Asked Questions

The primary purpose of Amendment No. 9 is to extend the maturity of the company's revolving credit facility and increase its borrowing capacity. This enhances D.R. Horton's financial flexibility and ensures continued access to capital for its business operations and strategic initiatives.

The Aggregate Revolving Credit Commitments have been increased to $1.59 billion. The company also has the option to further increase the total commitment under the credit agreement up to $2.5 billion through its accordion feature, subject to certain conditions.

The Revolving Credit Facility Termination Date has been extended to October 2, 2024.

Yes, the amendment modified the pricing for outstanding commitments, borrowings, and letters of credit under the Revolving Credit Facility, as detailed in the Pricing Schedule attached to Amendment No. 9.