D.R. Horton unit signs for new $625 million four-year revolver

Chicago, March 7 – D.R. Horton, Inc. announced that wholly owned subsidiary DRH Rental, Inc. signed for a new $625 million senior revolving credit facility on Friday with Mizuho Bank, Ltd. as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

There is an uncommitted accordion feature that could increase the credit facility another $625 million.

The facility provides for the issuance of letters of credit in an amount at closing equal to 50% of the total amount of credit commitments.

Availability is subject to a borrowing base calculation based on unrestricted cash and the book value of single-family rental and commercial real estate assets.

Pricing will be determined by the borrower’s leverage ratio.

With four tiers, interest will move between SOFR plus 175 basis points and 250 points. The commitment fee will range from 22.5 bps and 37.5 bps. Initial pricing is at level one, meaning SOFR plus 175 bps for interest and 22.5 bps for the commitment fee.

The facility matures March 4, 2026.

Joint lead arrangers and joint bookrunners are Mizuho Bank, Ltd., JPMorgan Chase Bank, NA, Wells Fargo Securities, LLC, BofA Securities, Inc. and TD Securities (USA) LLC.

JPMorgan Chase Bank, NA is the syndication agent.

Co-documentation agents are Wells Fargo Bank, NA, BofA Securities, Inc. and TD Securities (USA) LLC.

D.R. Horton is a Fort Worth-based single-family homebuilder.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.