8-KMaterial AgreementsFinancial EventsExhibits & Filings

HORTON D R INC /DE/ 8-K Report, Material Agreement (Oct 12, 2023)

Filed October 12, 2023For Securities:DHI

Summary

D.R. Horton, Inc. (DHI) announced an amendment to its senior unsecured revolving credit facility through its subsidiary, DRH Rental, Inc. The key update involves extending the facility's termination date by two years, from its original expiration to October 10, 2027. This extension provides greater financial flexibility and certainty for the company over a longer horizon. Furthermore, the amendment significantly increases the facility's accordion feature, allowing for a potential expansion of the aggregate credit limit up to $2.0 billion, subject to certain conditions and lender commitments. This enhanced borrowing capacity could support future growth initiatives or provide additional liquidity during periods of increased demand or strategic opportunities. The core structure of the facility, including the guarantors (material wholly-owned subsidiaries of DRH Rental) and exclusions (D.R. Horton, Inc. and certain other subsidiaries), remains consistent.

Key Highlights

  • 1Extended the Termination Date of the $1.025 billion senior unsecured revolving credit facility to October 10, 2027.
  • 2Increased the facility's accordion feature, allowing for potential expansion up to $2.0 billion.
  • 3The credit facility is provided by DRH Rental, Inc., a wholly-owned subsidiary of D.R. Horton, Inc.
  • 4Mizuho Bank, Ltd. continues to serve as the Administrative Agent.
  • 5The facility is unsecured and guaranteed by certain material wholly-owned subsidiaries of DRH Rental.
  • 6D.R. Horton, Inc. itself and certain other subsidiaries do not guarantee this facility.

Frequently Asked Questions

The main purpose is to report an amendment to D.R. Horton's credit agreement, specifically extending the maturity date and increasing the potential borrowing capacity of its revolving credit facility.

The Termination Date has been extended to October 10, 2027.

The Aggregate Credit Facility Limit can be increased up to $2.0 billion, subject to certain conditions and availability of bank commitments, up from its previous limit.

The facility is primarily the obligation of DRH Rental, Inc., a wholly-owned subsidiary. It is guaranteed by DRH Rental's material wholly-owned subsidiaries, but not by D.R. Horton, Inc. or subsidiaries related to its homebuilding, Forestar, or financial services operations.