M.D.C. Holdings reduces its revolver by half to $50 million

By Susanna Moon

Chicago, April 5 - M.D.C. Holdings, Inc. reduced its revolving credit facility to $50 million from $100 million, effective Monday, according to an 8-K filing with the Securities and Exchange Commission.

The company said it does not need the full capacity of the credit agreement to meet its liquidity needs.

M.D.C. said there are no penalties for reducing the credit facility. The company believes that it is in compliance with the covenants under the credit agreement, which has a maturity date of March 21, 2011.

The company said it notified administrative agent JPMorgan Chase Bank, NA on Wednesday of the change.

The company uses the facility to provide letters of credit required in the ordinary course of its business and financing in support of its homebuilding segments.

As of Wednesday, the company had letters of credit outstanding under the credit agreement in the amount of about $16.2 million and no outstanding borrowings.

The homebuilding and financial services company is based in Denver.

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