New Home cuts asset-based revolver to $60 million, extends to 2021

By Sarah Lizee

Olympia, Wash., June 26 – New Home Co. Inc. amended on Friday its asset-based revolving credit facility with U.S. Bank NA as administrative agent to extend the maturity to Sept. 30, 2021 and lowering commitments to $60 million from $130 million, according to an 8-K filing with the Securities and Exchange Commission.

The accordion was also decreased to $150 million from $200 million.

The amendment also reduces the company's minimum consolidated tangible net worth covenant to $150 million plus 50% of the cumulative consolidated net income earned by the company and its guarantors from and after March 31 plus 50% of the aggregate proceeds received by the company in connection with any offering of stock or equity in each fiscal quarter commencing on or after closing, from $180 million previously.

It also reduces the maximum net leverage ratio, subject to a minimum liquidity amount of $10 million, to 60% from 65%, modifies the restriction on secured debt to an aggregate maximum of $10 million and modifies the restriction on repurchases of the company's senior notes.

The interest rate on borrowings will be Libor plus 350 basis points to 450 bps, based on leverage and subject to a Libor floor.

The undrawn fee ranges from 35 bps to 80 bps.

The company is a homebuilder based in Aliso Viejo, Calif.

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