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PNC Bank Leads $100MM Upsize to M/I Homes Credit Facility

July 21, 2017, 07:08 AM
Filed Under: Real Estate

M/I Homes, Inc. announced that it has amended its unsecured revolving credit facility to increase the borrowing availability from $400 million to $500 million and extend the maturity to July 2021. The credit facility was previously scheduled to mature in October 2018.  The $500 million in borrowing availability includes a $25 million accordion feature, subject to additional commitments, and a letter of credit sublimit of $125 million. 

Robert H. Schottenstein, Chief Executive Officer and President, commented, "The extended term and increased commitment amount of our credit facility will provide us with additional financial flexibility. We have maintained longstanding relationships with many of our banks, and we appreciate the support of this strong group of banking partners and the confidence that this commitment reflects in our business."

Joint Lead Arrangers and Joint Bookrunners for the extension of the credit facility included PNC Capital Markets LLC, Citigroup Global Markets Inc., Fifth Third Bank, J.P. Morgan Chase Bank, N.A., U.S. Bank National Association, and Wells Fargo Securities, LLC.  The credit facility has multiple lenders, led by PNC Bank, National Association, as Administrative Agent.  Citibank, N.A., Fifth Third Bank, J.P. Morgan Chase Bank, N.A., U.S. Bank National Association, and Wells Fargo Bank, National Association are Syndication Agents, and Comerica Bank and The Huntington National Bank are Documentation Agents. Additional banks participating in the credit facility include Texas Capital Bank, National Association, Associated Bank, National Association and Regions Bank.

The amended credit facility contains financial covenants, including a minimum consolidated tangible net worth, which was re-set to a minimum of $465.2 million at closing, subject to increase over time based on earnings and proceeds from equity offerings after March 31, 2017.  The Company's actual tangible net worth was $620.3 million at March 31, 2017.  There were no other changes to the financial covenants, which include a maximum leverage ratio and minimum interest coverage requirement.  Interest on amounts borrowed under the credit facility is payable at a rate which is adjusted daily and is equal to the sum of the LIBOR Rate for a one-month period plus a margin of 2.50%.  The margin is subject to adjustment in subsequent quarterly periods based on the Company's leverage ratio. Amounts borrowed under the credit facility are guaranteed by certain of the Company's subsidiaries.

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