D.R. Horton, Inc.
) recently announced the pricing of senior notes worth $500
million. The senior notes carry an annual interest rate of 3.750%
which will be paid semi-annually and will mature on Mar 1, 2019.
The company intends to close the offering of senior notes on Feb
24. The net proceeds from the senior notes will be used for
general corporate expenses.
In a separate press release, D.R. Horton announced that it
intends to offer senior notes worth $400 million due 2019. The
net proceeds are to be used for general corporate purposes.
D.R. Horton is one of the largest homebuilders in the U.S. The
company's homebuilding cash & cash equivalents totaled $801.1
million as of Dec 31, 2013. In the first quarter 2014, D.R.
Horton invested $467 million in lots, land and development. As of
Dec 31, 2013, the company owned 126,000 lots and controlled
49,000 lots through option contracts. The present issue of senior
notes will further enhance the company's ability to invest in
strengthening its inventory.
As the housing market continues to gain momentum with increasing
housing demand, the company is well positioned in the upcoming
spring selling season, given its strong supply of finished lots
and homes in inventory. The company's weekly sales pace also
picked up momentum in January, driven by increasing housing
D.R. Horton currently carries a Zacks Rank #1 (Strong Buy).
Investors interested in the homebuilding sector can also consider
William Lyon Homes
Taylor Morrison Home Corporation
). While William Lyon and Taylor Morrison sport a Zacks Rank #1,
Lennar carries a Zacks Rank #2 (Buy).
D R HORTON INC (DHI): Free Stock Analysis
LENNAR CORP -A (LEN): Free Stock Analysis
TAYLOR MORRISON (TMHC): Free Stock Analysis
WILLIAM LYON HM (WLH): Get Free Report
To read this article on Zacks.com click here.