Summary
D.R. Horton, Inc. (DHI), through its wholly-owned subsidiary DHI Mortgage Company, Ltd., has entered into a First Amendment to its Fourth Amended and Restated Master Repurchase Agreement. This amendment, effective February 17, 2023, primarily serves to increase the financing and liquidity available to DHI Mortgage. The agreement facilitates the transfer of eligible loans by DHI Mortgage to buyers in exchange for funds, essentially a repurchase agreement structure. Key to investors is the significant increase in the facility's capacity, raising the Maximum Aggregate Commitment to $2.0 billion, with an additional accordion feature that can expand it to $2.3 billion. This enhanced liquidity suggests DHI Mortgage is positioning itself to manage its loan portfolio effectively and potentially support increased origination volumes. The facility's term has also been extended through February 16, 2024, providing a stable financing runway.
Key Highlights
- 1DHI Mortgage entered into a First Amendment to its Master Repurchase Agreement, effective February 17, 2023.
- 2The amendment increases the Maximum Aggregate Commitment of the repurchase facility to $2.0 billion.
- 3An accordion feature allows for a potential increase to $2.3 billion under certain conditions.
- 4The repurchase facility provides financing and liquidity to DHI Mortgage by facilitating loan transfer transactions.
- 5The term of the Amended Repurchase Facility has been extended through February 16, 2024.
- 6The outstanding amounts under this facility are not guaranteed by D.R. Horton, Inc. or its other subsidiaries.
- 7U.S. Bank National Association serves as the Administrative Agent and a Buyer.