New Home extends revolver maturity, trims commitments and accordion

By Marisa Wong

Morgantown, W.Va., Oct. 2 – New Home Co. Inc. amended on Sept. 27 its amended and restated credit agreement dated May 10, 2016 to, among other things, extend the maturity date and decrease commitments, according to an 8-K filed Monday with the Securities and Exchange Commission.

The amendment extends the maturity date of the revolving credit facility to Sept. 1, 2020 and decreases the total commitments under the facility to $200 million from $260 million and the increase option to $300 million from $350 million.

The amendment also updates some financial covenants, including the tangible net worth, minimum liquidity and interest coverage tests, in addition to providing relief on compliance with the interest coverage test as long as the company maintains cash equal to no less than the trailing 12-month consolidated interest incurred.

In addition, some wholly owned subsidiaries were added as guarantors.

U.S. Bank NA, d/b/a Housing Capital Co., is administrative agent.

The homebuilder is based in Aliso Viejo, Calif.

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