Meritage lifts credit facility, refreshes accordion, extends maturity

By Marisa Wong

Morgantown, W.Va., May 31 – Meritage Homes Corp. amended its amended and restated credit agreement dated June 13, 2014 with JPMorgan Chase Bank, NA as administrative agent to increase the total commitments available to $625 million from $540 million, according to an 8-K filing with the Securities and Exchange Commission.

The amendment also refreshes the accordion feature, allowing the company to increase the total commitments under the credit agreement by up to $100 million.

In addition, the company extended the maturity date of a substantial portion of the facility to July 9, 2021 from July 9, 2020. Of the total $625 million commitment, $60 million matures on July 9, 2019, and $565 million matures on July 9, 2021.

The amendment also resets the minimum consolidated tangible net worth floor to 70% of consolidated tangible net worth as of March 31. Aside from that, the credit agreement’s other financial covenants were not modified.

As of May 31, $75 million of borrowings were outstanding under the credit agreement, and the company had outstanding letters of credit totaling roughly $42.1 million, leaving about $507.9 million available to be drawn.

Meritage is a homebuilder based in Scottsdale, Ariz.

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