Summary
D.R. Horton, Inc. (DHI) announced via an 8-K filing that its wholly-owned subsidiary, DHI Mortgage Company, Ltd., has entered into the Third Amendment to its Master Repurchase Agreement. This amendment, effective August 29, 2024, primarily extends the term of the existing repurchase facility through May 9, 2025, or an earlier termination date as stipulated by the agreement. This facility is crucial for DHI Mortgage, providing essential financing and liquidity by enabling purchase transactions where DHI Mortgage transfers eligible loans to buyers in exchange for funds.
Key Highlights
- 1DHI Mortgage Company, Ltd. entered into a Third Amendment to its Master Repurchase Agreement.
- 2The amendment extends the term of the financing facility to May 9, 2025, or an earlier termination event.
- 3The Master Repurchase Agreement facilitates financing and liquidity for DHI Mortgage's loan transfer transactions.
- 4The facility involves DHI Mortgage transferring eligible loans to buyers (including U.S. Bank National Association) in exchange for funds.
- 5D.R. Horton, Inc. and other subsidiaries do not guarantee amounts outstanding under this repurchase facility.
- 6The amendment is effective as of August 29, 2024.
- 7The full amendment document is filed as an exhibit to the 8-K.
Frequently Asked Questions
The Master Repurchase Agreement provides DHI Mortgage Company, Ltd. with financing and liquidity by allowing it to transfer eligible loans to buyers and receive funds in return. This mechanism helps manage the company's cash flow and operational needs related to its mortgage business.
The Third Amendment extends the term of the Master Repurchase Agreement. The new expiration date is the earlier of May 9, 2025, or any date the buyers' commitments are terminated due to specific conditions outlined in the agreement, such as governmental orders or operation of law.
No, amounts outstanding under this Amended Repurchase Facility are not guaranteed by D.R. Horton, Inc. or any of its subsidiaries that guarantee the debt for its homebuilding, rental, or Forestar operations.
The key parties are DHI Mortgage Company, Ltd. (as the seller of loans), U.S. Bank National Association (acting as a buyer, administrative agent, sole book runner, and lead arranger), and other listed buyers.