Lennar expanded and extended its revolving credit facility and added $40 million to its delayed-draw term-loan facility. The changes increase the homebuilder’s available borrowing capacity and adjust pricing on loans tied to SOFR, while leaving the term loans’ stated maturity dates unchanged.
Key details
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Revolving credit commitments rise to $3.795 billion. The facility includes $3.545 billion of Class A commitments, $225 million of Class B commitments and a new $25 million Class C commitment. The company can seek up to another $750 million from lenders through an accordion feature, bringing potential total capacity to $4.545 billion, compared with $3.5 billion previously.
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The largest portion of the revolver gets a longer maturity. The Class A commitments, totaling $3.545 billion, now mature in November 2031, two years later than the previous November 2029 date. The $225 million Class B commitments mature in May 2027, while the new $25 million Class C commitments mature in November 2029.
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Lennar adds $40 million to its delayed-draw term-loan facility. The aggregate amount of term loans under the facility increases from $1.71 billion to $1.75 billion. The amount still available through that facility’s accordion feature falls from $400 million to $360 million. Unlike the revolving facility, term-loan amounts cannot be borrowed again once repaid.
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The term loans retain their existing maturity schedule. They mature in May 2028, with a one-time option for Lennar to extend the maturity to May 2029 if specified conditions are met.
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Pricing terms for SOFR-based borrowing change. Both facilities remove a 0.10-percentage-point credit spread adjustment that previously applied to SOFR-based loans. The agreements also provide for a 0.10-percentage-point reduction in the applicable margin if Lennar meets certain credit-rating conditions. For Class A SOFR-based revolver borrowings, qualifying ratings can also reduce the commitment fee by 0.025 percentage points.
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The facilities can support general corporate needs. Proceeds may be used for working capital and other general corporate purposes, including acquisitions. Certain wholly owned Lennar subsidiaries, primarily homebuilding subsidiaries, guarantee the company’s obligations under both agreements.
Plain-English implications
Lennar has more committed revolving credit immediately available, with the potential to expand that capacity further if lenders provide additional commitments. The extension to 2031 applies to the $3.545 billion Class A portion—not to every commitment in the facility. The term-loan amendment increases the facility’s aggregate amount but does not change its stated maturity dates.