Lennar Increases Unsecured Revolving Credit Facility To $1.5 Billion
MIAMI, June 25, 2014
MIAMI, June 25, 2014 /PRNewswire/ --Lennar Corporation (NYSE: LEN and LEN.B),
one of the nation's largest homebuilders, announced today that it increased
its unsecured revolving credit facilityfrom $950 millionto $1.5 billion and
extended the credit facility's maturity to June 2018. The $1.5 billion
includes a $263 million accordion feature, subject to additional commitments.
Bruce Gross, Lennar's Vice President and Chief Financial Officer, said, "We
are pleased with the increase in our revolver which will provide greater
financial flexibility and additional liquidity to fund our strategic growth
plans and our working capital needs, while reducing the Company's overall
borrowing costs. We appreciate the strong support that we received in this
transaction from our lenders and the confidence they have in our business."
Amounts borrowed under the credit facility accrue interest at alternative
rates based on leverage, the range of which is the Eurodollar Rate plus a
margin equal to 1.75% to 2.25%. The proceeds available under the credit
facility may be used for working capital and general corporate purposes. The
credit agreement also provides that up to $500 million in commitments may be
used for letters of credit. The credit agreement has multiple lenders led by
JPMorgan Chase Bank, N.A., as administrative agent. The other lenders are
Citibank, N.A.; The Royal Bank of Scotland PLC; Bank of America, N.A.;
Deutsche BankAG New York Branch; Royal Bank of Canada; Bank of Montreal;PNC
Bank, National Association; UBS AG, Stamford Branch;Wells Fargo Bank,
National Association; HSBC Bank USA; Texas Capital Bank, N.A.; TD Bank N.A.;
California Bank & Trust; Comerica Bank; Regions Bank and Capital Bank, N.A.
Amounts borrowed under the credit agreement are guaranteed by certain of the
Company's subsidiaries. The credit agreement contains financial covenants,
including a minimum consolidated tangible net worth, a maximum leverage ratio
and interest coverage.
Lennar Corporation, founded in 1954, is one of the nation's largest builders
of quality homes for all generations. The Company builds affordable, move-up
and retirement homes primarily under the Lennar brand name. Lennar's Financial
Services segment provides mortgage financing, title insurance and closing
services for both buyers of the Company's homes and others. Lennar's Rialto
Investments segment is a vertically integrated asset management platform
focused on investing throughout the commercial real estate capital structure.
Lennar's Multifamily segment is a national developer of high-quality
multifamily rental properties. Previous press releases and further information
about the Company may be obtained at the "Investor Relations" section of the
Company's website, www.lennar.com.
SOURCE Lennar Corporation
Contact: Diane Bessette, Vice President and Treasurer, Lennar Corporation,
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