8-KMaterial AgreementsOther EventsExhibits & Filings

HORTON D R INC /DE/ 8-K Report, Material Agreement (Aug 5, 2021)

Filed August 5, 2021For Securities:DHI

Summary

D.R. Horton, Inc. (DHI) announced the completion of a public offering of $600 million in 1.300% Senior Notes due 2026 on August 5, 2021. The company received net proceeds of approximately $595.9 million from this offering, which are expected to be used for general corporate purposes. The notes are governed by an indenture and are guaranteed by substantially all of DHI's current homebuilding subsidiaries, providing additional security to noteholders. Key terms include a semi-annual interest payment schedule and a maturity date of October 15, 2026. The notes are redeemable at the company's option under specific conditions and before maturity, with a call protection feature. In the event of a change of control coupled with a ratings downgrade, DHI will be obligated to offer to repurchase the notes at 101% of their principal amount. The notes are unsecured general obligations of the company, ranking equally with other unsubordinated unsecured debt.

Key Highlights

  • 1Completion of a $600 million public offering of 1.300% Senior Notes due 2026.
  • 2Net proceeds of approximately $595.9 million received from the offering.
  • 3Notes mature on October 15, 2026, with a 1.300% annual interest rate, payable semi-annually.
  • 4Substantially all of D.R. Horton's homebuilding subsidiaries are providing guarantees for the notes.
  • 5Company has the option to redeem the notes prior to maturity, subject to specified redemption prices.
  • 6A change of control event combined with a ratings downgrade triggers a 101% repurchase offer to noteholders.
  • 7The notes are unsecured general obligations of the company and rank equally with other senior unsecured debt.

Frequently Asked Questions

This 8-K filing primarily reports on D.R. Horton's entry into a material definitive agreement related to the completion of a public offering of $600 million in 1.300% Senior Notes due 2026.

The notes have a principal amount of $600 million, a coupon rate of 1.300% per annum, and mature on October 15, 2026. Interest is paid semi-annually, and the notes are guaranteed by most of DHI's homebuilding subsidiaries.

If a change of control occurs and the credit rating of the notes is downgraded, D.R. Horton must offer to purchase the notes from holders at 101% of their principal amount, plus accrued interest.

The notes are unsecured general obligations of D.R. Horton and rank equally with all other existing and future unsecured and unsubordinated indebtedness of the company. The guarantees from subsidiaries rank similarly for those entities.