D.R. Horton Ups Revolver to $600M

D.R. Horton said Thursday it has received additional lending commitments from five banks to increase the capacity of its five-year senior unsecured revolving credit facility to $600 million.

Previously, the Fort Worth, Tex.-based homebuilder had a $125 million line of credit from a single lender, The Royal Bank of Scotland.

RBS remains the sole lead arranger and administrative agent of the facility; it has been joined Citibank, Deutsche Bank Trust Co. Americas, JPMorgan Chase Bank, UBS, Stamford Branch and Wells Fargo Bank as co-arrangers.

The facility has also been amended to include an uncommitted accordion feature which could increase the borrowing capacity to $1 billion, subject to certain conditions and availability of additional bank commitments.

The facility’s letter of credit sublimit is 50% of the revolving credit commitment, or $300 million.

D.R. Horton is rated BB- by Standard & Poor’s, Ba2 by Moody’s Investors Service and BB by Fitch Ratings.

Like many homebuilders, it has been taking on more debt to buy land in anticipation of a housing recovery. It obtained its revolver from RBS in September, having terminated a previous facility in 2009. Also in September, it priced $350 million of 4.375% senior unsecured notes due 2022, its second offering this year.