D.R. Horton to use cash, bank borrowings to pay convertible put

New York, Feb. 14 - D.R. Horton, Inc. said it plans to pay the upcoming put on its zero-coupon convertible senior notes due 2021 with cash from operations and borrowings under its revolving credit facility.

The convertibles are putable on May 11 at their accreted value of $559.73 per note.

If all holders exercise the put option the company will have to pay $213.3 million, D.R. Horton said in a filing with the Securities and Exchange Commission.

The Arlington, Texas homebuilder added that it does not expect that repaying any notes put back to the company will have "any significant adverse effects" on its financial condition, operations or cash flows. However it will have to write off the appropriate amount of unamortized debt issuance costs that will total $4.8 million at that point.

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