8-KMaterial AgreementsExhibits & Filings

HORTON D R INC /DE/ 8-K Report, Material Agreement (May 5, 2025)

Filed May 5, 2025For Securities:DHI

Summary

D.R. Horton, Inc. (DHI) announced the successful completion of a public offering of $500 million in 4.850% Senior Notes due 2030. The company secured net proceeds of approximately $496.7 million from this issuance, which will be governed by a Senior Debt Securities Indenture. These notes are general unsecured obligations of the company and are guaranteed by most of its homebuilding subsidiaries, ranking equally with existing and future unsecured debt that is not subordinated. The issuance provides DHI with additional capital, potentially to support its ongoing operations and strategic initiatives within the homebuilding sector. Investors should note the coupon rate of 4.850% and the maturity date of October 15, 2030. The company retains the option to redeem the notes, with specific redemption prices detailed based on the timing relative to September 15, 2030. Additionally, a change of control event coupled with a ratings downgrade could trigger a mandatory purchase offer from the company at 101% of the principal amount.

Key Highlights

  • 1Completed a public offering of $500 million of 4.850% Senior Notes due 2030.
  • 2Received net proceeds of approximately $496.7 million from the offering.
  • 3Notes mature on October 15, 2030, with interest payable semi-annually at 4.850% per annum.
  • 4The notes are general unsecured obligations of DHI and are guaranteed by most of its homebuilding subsidiaries.
  • 5Company has the option to redeem the notes prior to maturity under specific conditions and pricing.
  • 6A change of control event combined with a ratings downgrade triggers a mandatory offer to repurchase notes at 101% of principal.
  • 7Standard events of default are included in the governing indenture.

Frequently Asked Questions

The filing does not explicitly state the use of proceeds, but typically, such offerings provide companies with additional capital for general corporate purposes, which can include funding operations, acquisitions, or capital expenditures. For D.R. Horton, this could support their ongoing homebuilding activities and strategic growth.

The notes carry a fixed interest rate of 4.850% per annum, payable semi-annually on April 15 and October 15. The principal amount matures on October 15, 2030.

These notes are general unsecured obligations of D.R. Horton, Inc. They are guaranteed by substantially all of the Company's current homebuilding subsidiaries, and these guarantees are also general unsecured obligations of the guarantors. The notes rank equally with other unsecured and unsubordinated indebtedness of the company.

If a change of control event occurs and is accompanied by a ratings downgrade for the notes, D.R. Horton will be required to offer to purchase the notes from holders at 101% of their principal amount, plus accrued interest, subject to certain exceptions.