8-KMaterial AgreementsExhibits & Filings

HORTON D R INC /DE/ 8-K Report, Material Agreement (Oct 2, 2020)

Filed October 2, 2020For Securities:DHI

Summary

D.R. Horton, Inc. (DHI) announced on October 2, 2020, the completion of a public offering of $500 million in aggregate principal amount of 1.400% Senior Notes due 2027. The company received net proceeds of approximately $495.4 million after accounting for underwriting discounts. This financing aims to strengthen the company's capital structure and provide flexibility for its operations and strategic initiatives. The notes are governed by a Senior Debt Securities Indenture, with interest payable semi-annually at a 1.400% annual rate, maturing on October 15, 2027. Key provisions include optional redemption by the company and a change of control clause that could trigger a repurchase offer to noteholders under specific conditions. The notes are unsecured and guaranteed by most of D.R. Horton's homebuilding subsidiaries, ranking equally with other senior unsecured debt.

Key Highlights

  • 1Completed a $500 million public offering of 1.400% Senior Notes due 2027.
  • 2Received net proceeds of approximately $495.4 million from the offering.
  • 3Notes mature on October 15, 2027, with a stated interest rate of 1.400% per annum.
  • 4Interest payments are semi-annual, due on April 15 and October 15, starting April 15, 2021.
  • 5The company has the option to redeem the notes early, with specific redemption pricing structures before and after August 15, 2027.
  • 6A 'change of control' provision requires the company to offer to repurchase notes at 101% of principal if combined with a ratings downgrade.
  • 7The notes are general unsecured obligations of the company, guaranteed by most homebuilding subsidiaries.

Frequently Asked Questions

While the filing doesn't explicitly state the purpose, such offerings typically aim to strengthen the company's balance sheet, fund general corporate purposes, refinance existing debt, or support ongoing operations and strategic growth initiatives.

The notes have a principal amount of $500 million, mature on October 15, 2027, and bear interest at a fixed rate of 1.400% per annum, payable semi-annually on April 15 and October 15, commencing April 15, 2021. They are unsecured obligations of D.R. Horton, guaranteed by most of its homebuilding subsidiaries.

The company is required to make an offer to repurchase the notes at 101% of their principal amount, plus accrued interest, if a 'change of control' event occurs, provided that this event is also accompanied by a ratings downgrade of the notes, subject to certain exceptions.

The new notes are general unsecured obligations of D.R. Horton and rank senior to any future indebtedness that is explicitly subordinated to these notes. They rank equally with all other existing and future unsecured indebtedness of the company that is not subordinated.