Dream Finders Homes Enters Material Definitive Agreement

Ticker: DFH · Form: 8-K · Filed: Jun 11, 2024 · CIK: 1825088

Sentiment: neutral

Topics: material-agreement

Related Tickers: DFH

TL;DR

DFH signed a big deal, details TBD.

AI Summary

On June 6, 2024, Dream Finders Homes, Inc. entered into a material definitive agreement. The filing does not disclose specific details of the agreement, such as the counterparty or financial terms, but indicates it is a significant event for the company.

Why It Matters

This filing signals a significant new business development for Dream Finders Homes, potentially impacting its future operations and financial performance.

Risk Assessment

Risk Level: medium — The lack of specific details in the filing regarding the material definitive agreement introduces uncertainty about its nature and potential impact.

Key Players & Entities

FAQ

What is the nature of the material definitive agreement entered into by Dream Finders Homes, Inc.?

The filing does not specify the nature of the agreement, only that a material definitive agreement was entered into on June 6, 2024.

Who is the counterparty to this material definitive agreement?

The filing does not disclose the identity of the other party involved in the agreement.

What are the key financial terms or obligations associated with this agreement?

Specific financial terms or obligations related to the agreement are not detailed in this Form 8-K filing.

When did the earliest event reported in this filing occur?

The earliest event reported in this filing occurred on June 6, 2024.

What is the principal executive office address for Dream Finders Homes, Inc.?

The principal executive offices are located at 14701 Phillips Highway, Suite 300, Jacksonville, Florida 32256.

Filing Stats: 885 words · 4 min read · ~3 pages · Grade level 10.4 · Accepted 2024-06-11 16:40:30

Key Financial Figures

Filing Documents

01. Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement. On June 6, 2024, Dream Finders Homes, Inc., a Delaware corporation (the "Company"), entered into a Fourth Amendment to the Amended and Restated Credit Agreement (the "Amendment"), which amends its Amended and Restated Credit Agreement dated as of June 2, 2022 (as amended, the "Credit Agreement"). The Credit Agreement provides for a senior unsecured revolving credit facility and is with a syndicate of lenders with Bank of America, N.A. acting as administrative agent. The Amendment, among other things, (i) provides for an increase in the aggregate commitments under the revolving credit facility to $1.390 billion, subject to a borrowing base; (ii) extends the maturity date from July 17, 2026 to June 4, 2027 for certain new and existing lenders comprising $1.330 billion of the $1.390 billion of aggregate commitments under the Credit Agreement; and (iii) provides the Company with the ability to incur certain additional unsecured debt. Certain of our subsidiaries guarantee the Company's obligations under the Credit Agreement. The Amendment also updated the Company's minimum tangible net worth covenant, which resulted in an increase to the base component of such covenant from $607 million to $739 million. The Credit Agreement includes an accordion feature that allows the aggregate commitments to increase to up to $2.0 billion, subject to a borrowing base. Under the Credit Agreement, the Company has the ability to draw "Term SOFR Rate Loans" or "Daily Simple SOFR Rate Loans". Term SOFR Rate Loans bear interest based on Term SOFR rates for one or three month interest periods and include a SOFR adjustment of 10 basis points for each interest period. Daily Simple SOFR Rate Loans bear interest based on Daily Simple SOFR rates and include a SOFR adjustment of 10 basis points. Interest under Term SOFR Rate Loans and Daily Simple SOFR Rate Loans also include an "applicable rate margin" determined based on the Company's n

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits (d) Exhibits. Number Description 10.1+ Fourth Amendment to Amended and Restated Credit Agreement, dated as of June 2, 2022, among Dream Finders Homes, Inc. Bank of America, N.A, as administrative agent, collateral agent, and issuing bank, and the lenders named therein as parties thereto. 104 Cover Page Interactive Data File (embedded within the inline XBRL document) + Certain schedules and similar attachments have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The registrant undertakes to furnish supplemental copies of any of the omitted schedules upon request by the SEC. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. DREAM FINDERS HOMES, INC. By: /s/ Robert E. Riva Robert E. Riva Vice President, General Counsel and Corporate Secretary Date: June 11, 2024

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