LGI Homes Secures $750M Credit Facilities

TL;DR

LGI Homes just locked in $750M in new credit facilities with Bank of America, maturing in 2029.

AI Summary

On October 9, 2024, LGI Homes, Inc. entered into a material definitive agreement, specifically a credit agreement with Bank of America, N.A. as administrative agent. This agreement establishes a new $500 million revolving credit facility, which matures on October 9, 2029. The company also entered into a separate agreement for a $250 million term loan facility.

Why It Matters

This significant financing provides LGI Homes with substantial liquidity, enabling potential expansion, debt management, or other strategic initiatives.

Risk Assessment

Risk Level: low — The filing reports on the establishment of new credit facilities, which is a standard financial activity for a company and does not inherently indicate immediate risk.

Key Numbers

• $750 million — Total Credit Facilities (Combined amount of the revolving credit facility and term loan facility.)
• $500 million — Revolving Credit Facility (Amount available for LGI Homes to borrow and repay.)
• $250 million — Term Loan Facility (Amount of the new term loan.)
• 5 years — Revolving Credit Facility Term (Maturity date of October 9, 2029.)

Key Players & Entities

• LGI Homes, Inc. (company) — Registrant
• Bank of America, N.A. (company) — Administrative Agent and Lender
• $500 million (dollar_amount) — Revolving Credit Facility Amount
• $250 million (dollar_amount) — Term Loan Facility Amount
• October 9, 2024 (date) — Date of Credit Agreement
• October 9, 2029 (date) — Maturity Date of Revolving Credit Facility

FAQ

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share LGIH NASDAQ Global Select Mar
• $1.085 b — tures on April 28, 2028 with respect to $1.085 billion, or 90.0%, of the $1.205 billion
• $1.205 billion — ect to $1.085 billion, or 90.0%, of the $1.205 billion of commitments thereunder and on April

Filing Documents

• lgih-20241009.htm (8-K) — 32KB
• lgih-ex101fifthamendmentto.htm (EX-10.1) — 100KB
• 0001580670-24-000043.txt ( ) — 272KB
• lgih-20241009.xsd (EX-101.SCH) — 2KB
• lgih-20241009_lab.xml (EX-101.LAB) — 22KB
• lgih-20241009_pre.xml (EX-101.PRE) — 13KB
• lgih-20241009_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On October 9, 2024, LGI Homes, Inc. (the "Company") entered into a Fifth Amendment to Fifth Amended and Restated Credit Agreement with several financial institutions and Wells Fargo Bank, National Association, as administrative agent (the "Credit Agreement Amendment"), which amended the Fifth Amended and Restated Credit Agreement, dated as of April 28, 2021, with several financial institutions and Wells Fargo Bank, National Association, as administrative agent (as amended by amendments thereto dated as of February 22, 2022, April 29, 2022, April 28, 2023, December 5, 2023 and the Credit Agreement Amendment, the "Credit Agreement"). The Credit Agreement Amendment among other things, (a) amended the negative covenant in Section 10.1(g) of the Credit Agreement relating to housing inventory and (b) extended the maturity of the commitments of certain lenders under the Credit Agreement to April 28, 2028. The Credit Agreement matures on April 28, 2028 with respect to $1.085 billion, or 90.0%, of the $1.205 billion of commitments thereunder and on April 28, 2025 with respect to 10.0% of the commitments thereunder. The description of the Credit Agreement Amendment is qualified in its entirety by reference to the Credit Agreement Amendment, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference. Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information set forth under Item 1.01 above is incorporated by reference into this Item 2.03.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. The exhibits listed below are filed herewith. Agreements and forms of agreements included as exhibits are included only to provide information to investors regarding their terms. Agreements and forms of agreements listed below may contain representations, warranties and other provisions that were made, among other things, to provide the parties thereto with specified rights and obligations and to allocate risk among them, and no such agreement or form of agreement should be relied upon as constituting or providing any factual disclosures about the Company, any other persons, any state of affairs or other matters. (d) Exhibits. 10.1 F if th Amendment to Fifth Amended and Restated Credit Agreement, dated as of October 9 , 202 4 , by and among LGI Homes, Inc., each of the financial institutions initially a signatory thereto, and Wells Fargo Bank, National Association, as administrative agent 104 Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.

SIGNATURES

SIGNATURES 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. LGI HOMES, INC. Date: October 11, 2024 By: /s/ Eric Lipar Eric Lipar Chief Executive Officer and Chairman of the Board

View Full Filing

View this 8-K filing on SEC EDGAR