Summary
D.R. Horton, Inc. (DHI) announced on June 1, 2020, the execution of a new $375 million 364-day senior unsecured revolving credit facility, effective May 28, 2020. This facility provides the company with significant short-term liquidity and flexibility. The credit agreement includes standard covenants and financial conditions similar to existing debt arrangements, indicating consistent financial management practices. Notably, the facility features an uncommitted accordion option that can expand its capacity by up to $175 million, potentially bringing the total to $550 million, subject to market conditions and lender commitments. This expansion capability offers DHI enhanced financial resources for future operational needs or strategic initiatives. The maturity date for this new facility is May 27, 2021.
Key Highlights
- 1DHI entered into a new $375 million 364-day senior unsecured revolving credit facility.
- 2The facility became effective on May 28, 2020.
- 3It includes an uncommitted accordion feature allowing for a potential increase of up to $175 million, to a total of $550 million.
- 4The credit facility matures on May 27, 2021.
- 5Covenants and financial conditions are consistent with the Company's existing $1.59 billion credit facility.
- 6Mizuho Bank, Ltd. is acting as the administrative agent.