Summary
On May 5, 2020, D.R. Horton, Inc. (DHI) successfully completed a public offering of $500 million in aggregate principal amount of 2.600% Senior Notes due 2025. The company received net proceeds of approximately $496.4 million after underwriting discounts. This offering represents a significant financing activity, providing the company with capital that can be used for various corporate purposes, including funding ongoing operations and strategic initiatives in the homebuilding sector. The Notes are unsecured obligations of the company and are guaranteed by substantially all of its current homebuilding subsidiaries. The interest rate is fixed at 2.600% per annum, payable semi-annually, with a maturity date of October 15, 2025. The terms of the issuance include provisions for optional redemption by the company and a change of control clause that could trigger a mandatory offer to repurchase the notes under specific conditions. Standard events of default are also included in the governing indenture.
Key Highlights
- 1D.R. Horton Inc. issued $500 million of 2.600% Senior Notes due 2025.
- 2Net proceeds from the offering were approximately $496.4 million.
- 3The Notes mature on October 15, 2025.
- 4Interest is payable semi-annually at a fixed rate of 2.600% per annum.
- 5The Notes are general unsecured obligations of the company, guaranteed by subsidiaries.
- 6The company has the option to redeem the Notes prior to maturity under specified conditions.
- 7A change of control event combined with a ratings downgrade triggers a mandatory offer to repurchase the Notes at 101% of the principal amount.