LGIH · 10-Q · 2026Q1 · Full report

Interest Rate and Refinancing Exposure

LGI Homes, Inc. · 2026-04-28 · Importance 56 · Surprise 24

Borrowings under the Credit Agreement carry interest at the Company’s option tied to Adjusted Term SOFR (with a 0.50% floor) plus an Applicable Margin (145–210 bps based on leverage) or a Base Rate tied to term/daily SOFR plus the Applicable Margin. At March 31, 2026 the Applicable Margin was 1.85% and SOFR was 3.67% (subject to the 0.50% floor). The Company also has multiple public senior note issuances ($400.0 million 2032 at 7.00%, $400.0 million 2028 at 8.75%, and $300.0 million 2029 at 4.00%) with fixed coupons and stated maturities through 2032, which create scheduled interest obligations and refinancing considerations. These rate structures and maturities expose the Company to both variable short-term rate movements and fixed coupon debt service requirements.