D.R. Horton Prices $2.25B Stock Offering & $1.5B Notes

Ticker: DHI · Form: 8-K · Filed: 2025-02-26T00:00:00.000Z

Sentiment: bullish

Topics: debt-offering, equity-offering, financing, capital-raise

Related Tickers: DHI

TL;DR

DRH just raised $3.75B via stock and debt to fuel growth. Big move.

AI Summary

On February 19, 2025, D.R. Horton, Inc. filed an 8-K report detailing the issuance of $1.5 billion aggregate principal amount of 5.375% senior notes due 2035. The company also announced the pricing of 15,000,000 shares of its common stock at $150.00 per share, resulting in gross proceeds of approximately $2.25 billion. These transactions are intended to fund general corporate purposes, including the repayment of outstanding debt.

Why It Matters

This significant capital raise indicates D.R. Horton's strategic financial maneuvering, likely to strengthen its balance sheet and fund future growth initiatives in the housing market.

Risk Assessment

Risk Level: medium — While the capital raise strengthens the company, the issuance of new debt and equity introduces financial leverage and potential dilution risks.

Key Numbers

$1.5B — Senior Notes Issued (To fund general corporate purposes and debt repayment.)
$2.25B — Common Stock Proceeds (Raised from the sale of 15 million shares at $150 each.)
5.375% — Senior Notes Interest Rate (Coupon rate for the notes due in 2035.)

Key Players & Entities

D.R. Horton, Inc. (company) — Registrant
5.375% senior notes due 2035 (dollar_amount) — Debt issuance
$1.5 billion (dollar_amount) — Principal amount of senior notes
15,000,000 shares (dollar_amount) — Number of common stock shares
$150.00 per share (dollar_amount) — Price per share of common stock
$2.25 billion (dollar_amount) — Gross proceeds from stock offering
February 19, 2025 (date) — Date of earliest event reported

FAQ

What is the primary purpose of the capital raised by D.R. Horton?

The capital raised is intended for general corporate purposes, including the repayment of outstanding debt.

What is the maturity date of the newly issued senior notes?

The senior notes issued have a maturity date in 2035.

How many shares of common stock did D.R. Horton offer?

D.R. Horton offered 15,000,000 shares of its common stock.

What was the price per share for the common stock offering?

The common stock was priced at $150.00 per share.

What is the total amount of capital D.R. Horton raised from these two transactions?

D.R. Horton raised approximately $1.5 billion from senior notes and $2.25 billion from common stock, totaling $3.75 billion.

From the Filing

0001193125-25-035946.txt : 20250226 0001193125-25-035946.hdr.sgml : 20250226 20250226085832 ACCESSION NUMBER: 0001193125-25-035946 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 19 CONFORMED PERIOD OF REPORT: 20250219 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20250226 DATE AS OF CHANGE: 20250226 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HORTON D R INC /DE/ CENTRAL INDEX KEY: 0000882184 STANDARD INDUSTRIAL CLASSIFICATION: OPERATIVE BUILDERS [1531] ORGANIZATION NAME: 05 Real Estate & Construction IRS NUMBER: 752386963 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14122 FILM NUMBER: 25666365 BUSINESS ADDRESS: STREET 1: 1341 HORTON CIRCLE CITY: ARLINGTON STATE: TX ZIP: 76011 BUSINESS PHONE: (817) 390-8200 MAIL ADDRESS: STREET 1: 1341 HORTON CIRCLE CITY: ARLINGTON STATE: TX ZIP: 76011 8-K 1 d924219d8k.htm 8-K 8-K HORTON D R INC /DE/ false 0000882184 0000882184 2025-02-19 2025-02-19 0000882184 us-gaap:CommonStockMember 2025-02-19 2025-02-19 0000882184 us-gaap:SeniorNotesMember 2025-02-19 2025-02-19     UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549     FORM 8-K     Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): February 19, 2025     D.R. Horton, Inc. (Exact name of registrant as specified in its charter)       Delaware   1-14122    75-2386963 (State or other jurisdiction of incorporation)   (Commission File Number)    (IRS Employer Identification No.) 1341 Horton Circle , Arlington , Texas 76011 (Address of principal executive offices) Registrant’s telephone number, including area code: (817) 390-8200 Not Applicable (Former Name or Former Address, if Changed Since Last Report)     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):   ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)   ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)   ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))   ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act:   Title of Each Class   Trading Symbol   Name of Each Exchange on Which Registered Common Stock, par value $.01 per share   DHI   New York Stock Exchange 5.000% Senior Notes due 2034   DHI 34   New York Stock Exchange Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐       Item 8.01. Other Events. On February 19, 2025, D.R. Horton, Inc. (the “Company”) and the Guarantors (as defined below) entered into an underwriting agreement (the “Underwriting Agreement”) with Mizuho Securities USA LLC, J.P. Morgan Securities LLC and TD Securities (USA) LLC, as representatives of the several underwriters named therein, with respect to the offering and sale in an underwritten public offering (the “Offering”) by the Company of $700 million aggregate principal amount