Meritage Homes amends loan to reduce rates, extend maturity

By Sara Rosenberg

New York, May 3 - Meritage Homes Corp. amended its $400 million unsecured revolving credit facility, lowering the interest rates found in the pricing grid, extending the maturity by two years to May 3, 2009 and increasing the accordion feature to $200 million from $50 million, according to an 8-K filed with the Securities and Exchange Commission Tuesday.

Pricing on the leverage can vary based on leverage. If the leverage ratio is greater than 2.00:1.00 then the loan is priced at Libor plus 200 basis points with a commitment fee of 37.5 bps. If the leverage ratio is greater than 1.75:1.00 but less than or equal to 2.00:1.00 then the loan is priced at Libor plus 180 bps with a commitment fee of 30 bps. If the leverage ratio is greater than 1.50:1.00 but less than or equal to 1.75:1.00 then the loan is priced at Libor plus 170 bps with a commitment fee of 27.5 bps. If the leverage ratio is greater than 1.25:1.00 but less than or equal to 1.50:1.00 then the loan is priced at Libor plus 160 bps with a commitment fee of 25 bps. And, if the leverage ratio is less than or equal to 1.25:1.00 then the loan is priced at Libor plus 150 bps with a commitment fee of 22.5 bps.

The amendment was completed on April 29.

Guaranty Bank is administrative agent on the deal.

Meritage Homes is a Scottsdale, Ariz.-based designer and builder of single-family homes.

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