New Home increases revolver to $260 million, extends maturity to 2019

By Angela McDaniels

Tacoma, Wash., May 11 – New Home Co. Inc. entered into an amended and restated credit agreement on Tuesday that provides for a $260 million asset-based revolving credit facility due April 30, 2019, according to an 8-K filing with the Securities and Exchange Commission.

The revolver has a $90 million accordion feature.

The interest rate is Libor plus a margin that ranges from 225 basis points to 300 bps based on the company’s leverage ratio. The commitment fee ranges from 25 bps to 100 bps.

Prior to the amendment and restatement, the revolver was $200 million in size and was scheduled to mature April 30, 2018. The interest rate and commitment fee are unchanged.

At closing, $199.92 million was outstanding under the revolver.

The revolver is guaranteed by some of the company’s significant wholly owned subsidiaries. It contains financial covenants relating to tangible net worth, liquidity, interest coverage and leverage – including a separate adjusted leverage test of the company’s joint ventures, which terminates upon achievement of a consolidated tangible net worth of $250 million – and a limit on secured debt of $55 million.

U.S. Bank NA is the administrative agent.

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

© 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.