D.R. Horton obtains needed consents for 9¾% notes

By Jennifer Chiou

New York, June 4 - D.R. Horton, Inc. announced the receipt of the required consents in the solicitation and exchange offer of newly issued 9¾% senior notes due 2010 for its 9¾% senior subordinated notes due 2010.

The company is soliciting consents to an amendment to the indenture that would eliminate many of the restrictive covenants in the existing notes.

D.R. Horton said that it has executed a supplemental indenture, adding that the amendment will not become operative unless the exchange offer is consummated.

The consent solicitation expired at 5 p.m. ET on June 3, and the exchange offer will expire at 5 p.m. ET on June 19. It began on May 21.

Each $1,000 of notes tendered will be exchanged for $1,000 of new notes. Noteholders who tender and consent by the consent solicitation expiration will also receive $10.00 in cash for each $1,000 principal amount of notes.

Interest on the new notes will accrue from the existing notes' last interest payment date.

The company said the exchange offer and consent solicitation are conditioned on the receipt of tenders and consents from holders of a majority of the outstanding notes and the satisfaction of other customary conditions.

MacKenzie Partners, Inc. (800 322-2885) is the exchange agent and information agent.

D.R. Horton is a homebuilder based in Fort Worth, Texas.

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