New Home enters credit agreement providing for $100 million revolver

By Wendy Van Sickle

Columbus, Ohio, Sept. 14 – New Home Co. Inc. entered into credit agreement providing for a $100 million revolver with JPMorgan Chase Bank, NA as administrative agent on Sept. 8, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement may be increased by an amount equal to the greater of $50 million and 10% of consolidated tangible assets.

There is a $30 million sublimit for letters of credit.

Borrowings bear interest at Libor plus a margin ranging from 250 basis points and 325 bps, and the commitment fee ranges from 25 but to 40 bps, both based on net leverage ratio.

The company must maintain a consolidated tangible net worth of at least 65% of the consolidated tangible net worth on the closing date; a maximum net leverage ratio; a minimum interest coverage ratio; and minimum liquidity of at least $10 million.

New Home has been purchased by Newport Holdings, LLC and Newport Merger Sub, Inc., funds managed by Apollo, and the new revolver was entered into in connection with closing of the acquisition.

New Home is a homebuilder with is executive offices in Scottsdale, Ariz.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.