Meritage Homes amends facility for better pricing, extended maturity

By Marisa Wong

Madison, Wis., July 10 – Meritage Homes Corp. amended its amended and restated credit agreement dated June 13, 2014 to improve pricing, extend the maturity date and expand the accordion feature, according to an 8-K filing with the Securities and Exchange Commission.

Interest now ranges from Libor plus 162.5 basis points to Libor plus 225 bps, depending on the company’s leverage ratio.

The commitment fee ranges from 25 bps to 40 bps, also based on the leverage ratio.

The facility matures on July 9, 2019, extended from June 2018.

In addition, the accordion feature was amended to permit the size of the facility to be increased up to $600 million, up from $500 million previously.

The credit agreement’s financial covenants were not modified, the filing noted.

As of June 30, no borrowings were outstanding under the credit agreement, but the company had outstanding letters of credit totaling $17.6 million, leaving $482.4 million available to be drawn.

JPMorgan Chase Bank, NA is the administrative agent.

The Scottsdale, Ariz.-based real estate development company entered into the amendment on July 9.

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