Summary
D.R. Horton, Inc. (DHI) announced a significant amendment to its Master Repurchase Agreement through its wholly-owned subsidiary, DHI Mortgage Company, Ltd. The Fifth Amendment to the Fourth Amended and Restated Master Repurchase Agreement, effective May 6, 2026, substantially enhances the financial flexibility and liquidity available to DHI Mortgage. Key changes include a substantial increase in the financing capacity and an extension of the maturity date, providing a more robust and longer-term funding structure.
Key Highlights
- 1DHI Mortgage's Master Repurchase Facility size increased to $1.925 billion.
- 2The maturity date for the facility has been extended to May 4, 2029, with options for further extension.
- 3The amendment modifies certain pricing terms and fees associated with the facility.
- 4Specific financial covenants have also been adjusted.
- 5The Amended Repurchase Facility facilitates DHI Mortgage's purchase transactions by providing necessary financing.
- 6No guarantees are provided by D.R. Horton, Inc. or other subsidiaries for amounts outstanding under this facility.
- 7The amendment was entered into with U.S. Bank National Association, acting as Administrative Agent and a Buyer.
Frequently Asked Questions
The Fifth Amendment significantly boosts the financial resources and operational flexibility of DHI Mortgage, a key subsidiary. It increases the available credit facility to $1.925 billion and extends the repayment timeline to May 2029, ensuring continued liquidity for DHI Mortgage's loan purchase activities and providing financial stability for a longer period.
No, the filing explicitly states that amounts outstanding under the Amended Repurchase Facility are not guaranteed by D.R. Horton, Inc. or any of its other subsidiaries that guarantee debt for its homebuilding, rental, or Forestar operations. This means the obligation lies solely with DHI Mortgage.
The facility allows DHI Mortgage to engage in purchase transactions where it transfers eligible loans to Buyers in exchange for funds. This is a critical mechanism for DHI Mortgage to obtain financing and maintain liquidity for its business operations, particularly in acquiring and managing loans.
The extension of the maturity date to May 4, 2029, provides DHI Mortgage with a more stable and long-term funding source. This reduced short-term refinancing risk and allows the company to plan its financial strategy with greater certainty over the next few years.