D.R. Horton investors tender $96.78 million 9¾% notes in exchange offer

By Susanna Moon

Chicago, June 20 - D.R. Horton, Inc. said holders of $96.78 million principal amount, or 85.27% of the outstanding principal amount, tendered their notes in the exchange offer of newly issued 9¾% senior notes due Sept. 15, 2010 for the 9¾% senior subordinated notes due 2010.

The company said it entered into the 29th supplemental indenture on June 20 after the exchange offer was consummated.

The exchange offer expired at 5 p.m. ET on June 19. It began on May 21.

On June 4, D.R. Horton said it received the required consents to amend the notes to eliminate many of the restrictive covenants in the existing notes.

The consent solicitation expired on June 3.

Each $1,000 of notes tendered will be exchanged for $1,000 of new notes. Noteholders who tendered and consented 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 were 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) was the exchange agent and information agent.

D.R. Horton is a homebuilder based in Fort Worth, Texas.

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