M/I Homes, Inc., Columbus (NYSE: MHO) said Thursday it has amended its unsecured revolving credit facility to increase the borrowing availability from $400 million to $500 million and extend the maturity to July 2021. The credit facility was previously scheduled to mature in October 2018. The $500 million in borrowing availability includes a $25 million accordion feature, subject to additional commitments, and a letter of credit sublimit of $125 million.
Robert H. Schottenstein, CEO and president, commented, “The extended term and increased commitment amount of our credit facility will provide us with additional financial flexibility. We have maintained longstanding relationships with many of our banks, and we appreciate the support of this strong group of banking partners and the confidence that this commitment reflects in our business.”
The amended credit facility contains financial covenants, including a minimum consolidated tangible net worth, which was re-set to a minimum of $465.2 million at closing, subject to increase over time based on earnings and proceeds from equity offerings after March 31, 2017. The Company’s actual tangible net worth was $620.3 million at March 31, 2017.
