LGIH · 10-Q · 2026Q1 · Full report

LGI Living Loan Agreement

LGI Homes, Inc. · 2026-04-28 · Importance 71 · Surprise 60

LGI Living SFR, an indirect wholly owned special purpose subsidiary, entered into a secured non‑recourse loan agreement with Evergreen Residential Capital that provides for up to $50.0 million in borrowings, with the ability to increase by up to $75.0 million (to $125.0 million) subject to agreement terms. As of March 31, 2026, $50.0 million was outstanding under the LGI Living Loan Agreement, which matures on July 8, 2030 and bears interest at 6.433% per annum (subject to adjustment if the loan amount increases). The loan is secured by LGI Living SFR assets and equity interests and is unconditionally guaranteed by the Company under a limited recourse guaranty with specific guaranty triggers; the guarantor must maintain liquidity of at least 15% of the loan amount and net worth in excess of 50% of the loan amount. The Company states it was in compliance with all covenants under the LGI Living Loan Agreement as of March 31, 2026.

Key facts

• If an event of default exists under the LGI Living Loan Agreement the lender may accelerate maturity of the loan and exercise other rights and remedies.
• On July 23, 2025 LGI Living SFR entered into a Loan Agreement providing for a secured non-recourse loan for up to $50.0 million which can be increased by up to $75.0 million to a total of $125.0 million.
• The LGI Living loan is unconditionally guaranteed as to payment and performance by the Company under a limited recourse guaranty and unconditionally guaranteed as to payment and performance by LGI Living - ER FIN, LLC with recourse limited to its equity interests in LGI Living SFR pledged as collateral.
• As of March 31, 2026, the total amount of borrowings outstanding under the LGI Living Loan Agreement was $50.0 million.
• The LGI Living loan requires the guarantor to maintain liquidity of not less than 15% of the loan amount and net worth in excess of 50% of the loan amount.
• The LGI Living loan bears interest at a rate of 6.433% per annum as of March 31, 2026.
• The LGI Living loan matures on July 8, 2030.
• At March 31, 2026, LGI Homes was in compliance with all covenants in the LGI Living Loan Agreement.

Impact estimates