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Ryland Group gives details on $300 million revolving credit facility
By Marisa Wong
Madison, Wis., Nov. 25 – Ryland Group, Inc. disclosed details of its $300 million unsecured four-year revolving credit facility in an 8-K filed Tuesday with the Securities and Exchange Commission.
Ryland entered into the credit facility on Nov. 21 with Citibank, NA as administrative agent, JPMorgan Chase Bank, NA as syndication agent and Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Bank of the West, RBS Securities Inc. and Wells Fargo Securities LLC as joint lead arrangers and joint bookrunners.
The credit facility includes a $150 million letter-of-credit sub-facility and a $25 million swingline facility.
In addition, the credit facility includes an accordion feature allowing commitments to be increased up to $450 million.
The commitments for the letter-of-credit sub-facility are not to exceed one half of the total amount of commitments.
The facility matures on Nov. 21, 2018 but may be extended for up to two additional one-year periods.
Outstanding borrowings will bear interest at Libor plus an applicable margin based on changes in the company’s leverage ratio.
If the leverage ratio exceeds certain thresholds, availability under the revolver will be subject to a borrowing base.
The financial covenants in the credit agreement include a maximum leverage ratio covenant, a minimum interest coverage test, a minimum liquidity test and a minimum net worth test.
The credit facility will be used for general corporate purposes.
Letters of credit issued and outstanding prior to the company entering into the credit agreement have been deemed letters of credit under the credit agreement, the filing noted.
Ryland is a Westlake Village, Calif.-based home building and mortgage-finance company.
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