D.R. Horton launches exchange offer, consent solicitation for 9¾% notes

By Angela McDaniels

Tacoma, Wash., May 21 - D.R. Horton, Inc. said it began an offer to exchange its 9¾% senior subordinated notes due 2010 for newly issued 9¾% senior notes due 2010.

The company is also soliciting consents to an amendment to the indenture that would eliminate many of the restrictive covenants applicable to the existing notes, according to a company news release.

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

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 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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