8-KMaterial AgreementsExhibits & Filings

HORTON D R INC /DE/ 8-K Report, Material Agreement (Aug 14, 2024)

Filed August 14, 2024For Securities:DHI

Summary

D.R. Horton, Inc. (DHI) has announced the completion of a significant public offering of $700 million in aggregate principal amount of 5.000% Senior Notes due 2034. The company received net proceeds of approximately $688.5 million from this issuance, after accounting for underwriting discounts. These new notes are governed by a Senior Debt Securities Indenture, as supplemented by the Sixth Supplemental Indenture, and will mature on October 15, 2034. These senior notes bear a coupon of 5.000% and interest will be paid semi-annually starting April 15, 2025. Importantly, the notes are guaranteed by substantially all of DHI's current homebuilding subsidiaries, providing an additional layer of security for noteholders. The offering and the notes have been approved for listing on the New York Stock Exchange. The terms allow for optional redemption by the company and include provisions for a change of control event that also involves a ratings downgrade, requiring DHI to make a repurchase offer at 101% of the principal amount.

Key Highlights

  • 1D.R. Horton (DHI) successfully completed a public offering of $700 million in 5.000% Senior Notes due 2034.
  • 2Net proceeds from the offering amounted to approximately $688.5 million after underwriting discounts.
  • 3The notes mature on October 15, 2034, with interest payable semi-annually at a rate of 5.000% per annum.
  • 4Substantially all of DHI's current homebuilding subsidiaries are providing guarantees for these senior notes.
  • 5The notes are general unsecured obligations of DHI, ranking senior to future subordinated indebtedness.
  • 6Optional redemption by DHI is permitted under specific terms and redemption prices.
  • 7A change of control event coupled with a ratings downgrade triggers a mandatory repurchase offer to noteholders at 101% of the principal amount.

Frequently Asked Questions

This 8-K filing announces the completion of a material definitive agreement, specifically the public offering of $700 million of 5.000% Senior Notes due 2034 by D.R. Horton, Inc.

D.R. Horton raised $700 million in principal amount. The notes carry a 5.000% annual interest rate, payable semi-annually, and mature on October 15, 2034. The net proceeds received by the company were approximately $688.5 million.

The notes are general unsecured obligations of D.R. Horton. They rank senior in right of payment to any future indebtedness that is expressly subordinated to the notes and equal in right of payment with existing and future unsecured indebtedness that is not so subordinated. The guarantees from subsidiaries are also unsecured.

If certain events occur that result in a change of control of the Company AND a ratings downgrade of the Notes (subject to exceptions), D.R. Horton will be required to offer to purchase all of the Notes from holders at 101% of their principal amount, plus accrued interest.