D.R. Horton, Inc. (NYSE:DHI), America’s Builder, announced that it has entered into a five-year $125 million senior unsecured revolving credit facility with The Royal Bank of Scotland plc. The facility has an uncommitted $375 million accordion feature which could increase the facility to $500 million, subject to certain conditions and availability of additional bank commitments. The facility includes a letter of credit sublimit equal to 50% of the revolving credit commitment, for an initial sublimit of $62.5 million.
The facility includes financial covenants that currently require the Company to maintain a minimum level of tangible net worth and a leverage ratio below a maximum level. The pricing schedule for outstanding commitments, borrowings and letters of credit is based on the Company’s leverage ratio.
Donald R. Horton, Chairman of the Board, said, “We are excited about the profitable growth opportunities we are seeing across our homebuilding markets, and believe this is an opportune time to add a revolving credit facility to our capital structure. We appreciate The Royal Bank of Scotland’s commitment to D.R. Horton and its support of our business.”
D.R. Horton, Inc., America’s Builder, is the largest homebuilder in the United States, based on homes closed in the twelve-month period ended June 30, 2012. Founded in 1978 in Fort Worth, Texas, D.R. Horton has operations in 75 markets in 26 states in the East, Midwest, Southeast, South Central, Southwest and West regions of the United States. The Company is engaged in the construction and sale of high quality homes with sales prices ranging from $90,000 to over $600,000. D.R. Horton also provides mortgage financing and title services for homebuyers through its mortgage and title subsidiaries.
Portions of this document may constitute “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Although D.R. Horton believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. All forward-looking statements are based upon information available to D.R. Horton on the date this release was issued. D.R. Horton does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements in this release include that the facility could increase to $500 million, subject to certain conditions and availability of additional bank commitments.