Lennar Corporation Increases Credit Facility Commitments to $2.875 Billion

Lennar Corporation, a leading homebuilder based in Miami, Florida, announced on November 25, 2024, that it has amended and restated its credit agreement governing its unsecured revolving credit facility. The changes include an increase in the lenders’ commitments to $2.875 billion until May 2027, after which this amount will be reduced to $2.650 billion until the final maturity in November 2029. The credit facility also features a $625 million accordion feature, allowing for potential borrowing capacity to be expanded to $3.5 billion.

The Ninth Amended and Restated Credit Agreement was established among Lennar Corporation as the borrower, with JPMorgan Chase Bank, N.A., BofA Securities, Inc., and Mizuho Bank, Ltd. acting as joint bookrunners, alongside several lenders and JPMorgan Chase Bank, N.A. as the administrative agent. This revolving loan under the Credit Facility allows for borrowing, repayment, and redrawing of funds, with the proceeds intended for working capital and general corporate purposes.

To secure the obligations under the Credit Agreement, certain wholly owned subsidiaries of Lennar Corporation, primarily homebuilding subsidiaries, entered into a Ninth Amended and Restated Guarantee Agreement. The Guarantee Agreement, dated November 25, 2024, ensures that these subsidiaries guarantee the company’s obligations under the Credit Agreement.

It is worth noting that the Company and its affiliates engage in financial arrangements with a majority of the lenders under the Credit Facility, along with their respective affiliates. Furthermore, some of these lenders’ affiliates provide financial services, advisory services, investment banking, and other forms of support to Lennar Corporation and its affiliates. Additionally, affiliates of certain lenders act as underwriters for the company’s senior note issuances.

The details presented above under Item 1.01 of the 8-K filing imply the creation of a direct financial obligation or an obligation under an off-balance sheet arrangement for the registrant, as indicated under Item 2.03.

For a comprehensive understanding, interested parties are encouraged to refer to the attached full terms in the Credit Agreement and the Guarantee Agreement, available as Exhibit 10.1 and Exhibit 10.2, respectively.

Lastly, in compliance with regulatory requirements, the company provided the necessary signatures as of December 2, 2024. Diane Bessette, Vice President and Chief Financial Officer of Lennar Corporation, signed the report on behalf of the company.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Lennar’s 8K filing here.

About Lennar

Lennar Corporation, together with its subsidiaries, operates as a homebuilder primarily under the Lennar brand in the United States. It operates through Homebuilding East, Homebuilding Central, Homebuilding Texas, Homebuilding West, Financial Services, Multifamily, and Lennar Other segments. The company’s homebuilding operations include the construction and sale of single-family attached and detached homes, as well as the purchase, development, and sale of residential land; and development, construction, and management of multifamily rental properties.