D.R. Horton Prices $700M in 5.5% Senior Notes Due 2035
D.R. Horton, Inc. recognized as “America’s Builder” and a leading home construction company in the United States, has announced the pricing of a registered underwritten public offering of $700 million in aggregate principal amount of senior notes. These notes, bearing an interest rate of 5.500% annually, are scheduled to mature on October 15, 2035. Interest payments will be made semi-annually, and the offering is expected to close on February 26, 2025, subject to customary closing conditions. The net proceeds from the offering will be used for general corporate purposes.
Transaction Details
The issuance of senior notes aligns with D.R. Horton’s strategic financial initiatives, aiming to support its ongoing operations and growth within the construction and residential real estate markets. By raising capital through this debt issuance, the company aims to strengthen its balance sheet, fund new construction projects, and maintain its competitive edge in the housing market.
The offering is led by a group of prominent financial institutions serving as Joint Book-Running Managers, including:
- Mizuho Securities USA LLC
- J.P. Morgan Securities LLC
- TD Securities (USA) LLC
- BofA Securities, Inc.
- U.S. Bancorp Investments, Inc.
- Wells Fargo Securities, LLC
- PNC Capital Markets LLC
- Truist Securities, Inc.
These financial institutions are responsible for underwriting and distributing the senior notes, ensuring that the offering reaches institutional investors and other qualified buyers.
Offering Process and Regulatory Compliance
D.R. Horton has filed a registration statement, including a prospectus and a related prospectus supplement, with the United States Securities and Exchange Commission (SEC) in connection with this offering. Potential investors are encouraged to review these documents for comprehensive information about the company and the terms of the senior notes. The registration statement, prospectus, and related documents are available free of charge through EDGAR.
Additionally, copies of the prospectus supplement and the accompanying prospectus can be obtained by contacting the Joint Book-Running Managers directly:
- Mizuho Securities USA LLC: Call 866-271-7403 or visit 1271 Avenue of the Americas, New York, NY 10020, Attention: Debt Capital Markets
- J.P. Morgan Securities LLC: Visit 383 Madison Avenue, New York, NY 10179, Attention: Investment Grade Syndicate Desk
- TD Securities (USA) LLC: Visit 1 Vanderbilt Ave, 11th Floor, New York, NY 10017, Attention: DCM-Transaction Advisory
Purpose and Strategic Benefits
The issuance of senior notes provides D.R. Horton with additional liquidity and financial flexibility. By locking in a fixed interest rate of 5.500% until 2035, the company can manage its borrowing costs effectively over the long term. The proceeds will support various corporate initiatives, including:
- Funding New Construction Projects: Expanding the company’s residential real estate portfolio across different regions in the United States.
- Land Acquisition: Securing prime land parcels for future development, ensuring a steady pipeline of construction opportunities.
- Operational Enhancements: Investing in technology and process improvements to enhance construction efficiency and customer satisfaction.
- Debt Refinancing: Potentially refinancing existing debt to optimize the company’s capital structure and reduce overall interest expenses.
Legal Considerations and Disclosures
This announcement is not intended as an offer to sell or a solicitation of an offer to buy the senior notes. Such an offer can only be made through the official prospectus supplement and accompanying prospectus. Furthermore, the offering is subject to legal regulations, and the senior notes will not be offered, solicited, or sold in any jurisdiction where such actions would be unlawful.
About D.R. Horton, Inc.
Founded in 1978, D.R. Horton, Inc. is a leading home construction company in the United States, renowned for its high-quality homes and customer-centric approach. Headquartered in Arlington, Texas, the company operates in multiple states, offering a wide range of residential properties, including single-family homes, townhomes, and multi-family units. With a commitment to excellence and innovation, D.R. Horton continues to shape the future of residential construction, catering to diverse homebuyers nationwide.
