8-KMaterial AgreementsFinancial EventsExhibits & Filings

HORTON D R INC /DE/ 8-K Report, Material Agreement (Feb 21, 2024)

Filed February 21, 2024For Securities:DHI

Summary

D.R. Horton, Inc. (DHI) announced a material amendment to its existing repurchase facility through its subsidiary, DHI Mortgage Company, Ltd. The Second Amendment to the Fourth Amended and Restated Master Repurchase Agreement, effective February 16, 2024, primarily concerns the financing and liquidity provided to DHI Mortgage. This facility allows DHI Mortgage to transfer eligible loans to buyers in exchange for funds, essentially a financing mechanism for its loan portfolio. The key update is the modification of the Amended Repurchase Facility's terms. While the specific details of the amendment are not fully disclosed in this 8-K, it's crucial to note that the facility's Maximum Aggregate Commitment remains at $1.6 billion, with an expandable accordion feature allowing it to increase up to $2.0 billion under certain conditions, such as additional commitments from existing or new buyers. The facility extends until February 13, 2025, or earlier termination events. Importantly, D.R. Horton, Inc. does not guarantee amounts outstanding under this facility.

Key Highlights

  • 1DHI Mortgage Company, Ltd. entered into a Second Amendment to its Master Repurchase Agreement on February 16, 2024.
  • 2The agreement provides financing and liquidity to DHI Mortgage by facilitating purchase transactions of eligible loans.
  • 3The Maximum Aggregate Commitment under the facility is $1.6 billion.
  • 4An accordion feature allows the Maximum Aggregate Commitment to increase up to $2.0 billion.
  • 5The facility's term extends through February 13, 2025, subject to termination provisions.
  • 6D.R. Horton, Inc. does not provide any guarantee for amounts outstanding under this repurchase facility.
  • 7This filing confirms a material definitive agreement and the creation of a direct financial obligation for DHI Mortgage.

Frequently Asked Questions

The Amended Repurchase Facility is designed to provide financing and liquidity to DHI Mortgage Company, Ltd. It facilitates purchase transactions where DHI Mortgage transfers eligible loans to buyers (U.S. Bank National Association and other listed buyers) in exchange for funds.

The current Maximum Aggregate Commitment under the Amended Repurchase Facility is $1.6 billion. However, there is an accordion feature that allows this limit to be increased to up to $2.0 billion if the Administrative Agent secures additional committed sums from existing buyers or adds new buyers.

No, D.R. Horton, Inc. does not guarantee any amounts outstanding under this Amended Repurchase Facility. Similarly, subsidiaries that guarantee debt for D.R. Horton's homebuilding, rental, or Forestar operations also do not provide guarantees.

The term of the Amended Repurchase Facility extends through the earlier of February 13, 2025, or any date when the buyers' commitments are terminated according to the facility's terms, by governmental authority order, or by operation of law.