8-KMaterial AgreementsExhibits & Filings

HORTON D R INC /DE/ 8-K Report, Material Agreement (Feb 26, 2025)

Filed February 26, 2025For Securities:DHI

Summary

D.R. Horton, Inc. (DHI) has announced the completion of a public offering for $700 million in aggregate principal amount of 5.500% Senior Notes due 2035. The offering yielded net proceeds of $695.2 million after underwriting discounts. These notes are governed by the Senior Debt Securities Indenture, as supplemented by the Seventh Supplemental Indenture. The interest rate of 5.500% per annum will be paid semi-annually, with a maturity date of October 15, 2035. The issuance of these notes provides DHI with significant liquidity and extends its debt maturity profile. The notes are guaranteed by substantially all of the company's current homebuilding subsidiaries, providing an additional layer of security. Investors should note the optional redemption features and the change of control provisions, which offer certain protections. The notes are unsecured and rank pari passu with existing and future unsecured indebtedness.

Key Highlights

  • 1Completion of a $700 million public offering of 5.500% Senior Notes due 2035.
  • 2Net proceeds of $695.2 million received from the offering.
  • 3Interest rate on the notes is 5.500% per annum, payable semi-annually.
  • 4Notes mature on October 15, 2035, with optional redemption features available.
  • 5The notes are guaranteed by substantially all of DHI's current homebuilding subsidiaries.
  • 6Change of control provision requires an offer to repurchase notes at 101% of principal plus accrued interest under specific conditions (ratings downgrade required).
  • 7Notes are unsecured general obligations of the company, ranking senior to subordinated debt and equal to other unsecured debt.

Frequently Asked Questions

While not explicitly stated, the issuance of $700 million in senior notes is typically done to enhance liquidity, fund general corporate purposes, refinance existing debt, or support ongoing operations and growth initiatives within the homebuilding sector.

The notes have a principal amount of $700 million, carry a fixed interest rate of 5.500% per annum payable semi-annually, and mature on October 15, 2035. They are guaranteed by most of DHI's homebuilding subsidiaries and are general unsecured obligations of the company.

In the event of certain change of control events at D.R. Horton coupled with a ratings downgrade of the notes, the company is obligated to offer to repurchase the notes at 101% of their principal amount, plus accrued and unpaid interest. This provides a level of protection against significant adverse events.

The 5.500% Senior Notes due 2035 are general unsecured obligations of D.R. Horton. They rank senior to any future indebtedness that is expressly subordinated to the notes and rank equally with all existing and future unsecured indebtedness of the company that is not so subordinated. The guarantees from subsidiaries rank similarly for those entities.