Lennar cancels $1.1 billion unsecured revolving credit facility

By Sara Rosenberg

New York, Feb. 22 - Lennar Corp. terminated its $1.1 billion senior unsecured revolving credit facility on Friday, according to an 8-K filed with the Securities and Exchange Commission on Monday.

JPMorgan was the administrative agent on the facility.

The revolver had been undrawn and was only being used for letters of credit. As a result, the company decided it would be more cost effective to enter into cash-collateralized letter-of-credit agreements instead.

The company has obtained $225 million in cash-collateralized letter-of-credit agreements with two banks, of which $164 million will be used to replace letters of credit that had been issued under the revolver.

Lennar is a Miami-based home builder and provider of financial services.

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