New Home increases revolver to $175 million, extends maturity

By Marisa Wong

Madison, Wis., May 8 – New Home Co. Inc. entered into a second modification agreement to its existing credit facility with U.S. Bank NA as administrative agent to increase the total lending commitments under its unsecured revolving credit facility to $175 million from $125 million, according to an 8-K filing with the Securities and Exchange Commission.

In addition, the modification contains an uncommitted accordion feature under which the company may increase the total principal amount up to a maximum of $200 million, as well as sublimits of $10 million for letters of credit and $5 million for same-day borrowings.

The maturity date of the previous facility has been extended to April 30, 2018, with a one-year extension option.

The interest rate is Libor plus an applicable margin ranging from 225 basis points to 300 bps, depending on the company’s leverage ratio.

The commitment fee on the unused portion of the facility ranges from 25 bps to 100 bps, also based on the leverage ratio.

The amended facility contains financial covenants relating to tangible net worth, leverage, liquidity and interest coverage and a limit on secured project debt.

The homebuilder is based in Aliso Viejo, Calif.

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