PulteGroup enters into $1 billion five-year revolving credit facility

By Sarah Lizee

Olympia, Wash., June 22 – PulteGroup, Inc. entered into a second amended and restated credit agreement on Friday that provides for a $1 billion senior unsecured revolving credit facility with Bank of America, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The amended credit agreement replaces the company’s previous credit agreement with similar terms and extends the maturity date to June 22, 2023 from June 28, 2019.

Borrowings bear interest at Libor plus a margin that ranges from 112.5 basis points to 200 bps while the unused fee ranges from 17.5 bps to 35 bps, both based on the debt to capitalization ratio.

Initially interest is Libor plus 150 bps and the unused fee is 25 bps.

There is a $500 million accordion feature.

Letters of credit may be issued with a sublimit equal to 50% of the total commitment amount, for an initial sublimit of $500 million.

The company is required to maintain a minimum interest coverage ratio and tangible net worth and to maintain a debt to capitalization ratio below a maximum level.

Merrill Lynch, Pierce, Fenner & Smith Inc., JPMorgan Chase Bank, NA, Citibank, NA, Mizuho Bank, Ltd. and SunTrust Robinson Humphrey, Inc. are joint lead arrangers and bookrunners, with JPMorgan as syndication agent.

Branch Banking and Trust Co., Comerica Bank, PNC Bank, NA and Wells Fargo Bank, NA are managing agents. Citibank, Mizuho Bank and SunTrust Bank are co-documentation agents.

PulteGroup is a Bloomfield Hills, Mich.-based homebuilder.

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