LGIH · 10-Q · 2026Q1 · Full report

Revolving Credit Facility

LGI Homes, Inc. · 2026-04-28 · Importance 49 · Surprise 6

The borrowing base under the Credit Agreement was $2.0 billion as of March 31, 2026, and the maximum available to borrow under that borrowing base was $2.0 billion. As of March 31, 2026, borrowings under the Credit Agreement and the outstanding principal amount of the 2028, 2029 and 2032 Senior Notes totaled approximately $1.7 billion, $19.3 million of letters of credit were outstanding under the Credit Agreement and $294.2 million was available to borrow. Borrowings under the Credit Agreement bear interest at either an Adjusted Term SOFR or a Base Rate plus an Applicable Margin; at March 31, 2026 the Applicable Margin was 1.85% and SOFR was 3.67% subject to a 0.50% floor. The Credit Agreement contains financial covenants and restrictions that, among other limits, restrict the repurchase of shares and payment of dividends through December 31, 2026, and the Company was in compliance with all Credit Agreement covenants at March 31, 2026.

Key facts

• Under the Credit Agreement the Applicable Margin ranges from 145 basis points to 210 basis points based on the Company’s leverage ratio as determined in accordance with a pricing grid.
• As of March 31, 2026, $294.2 million was available to borrow under the Credit Agreement.
• The Credit Agreement provides for a $1.1825 billion revolving credit facility, which can be increased by up to $95.0 million at the company's request, subject to terms and conditions.
• As of March 31, 2026, the borrowing base under the Credit Agreement was $2.0 billion.
• As of March 31, 2026, the maximum available to borrow under the Credit Agreement was $2.0 billion.
• As of March 31, 2026, borrowings under the Credit Agreement and the outstanding principal amount of the 2028, 2029 and 2032 Senior Notes totaled approximately $1.7 billion.
• The Credit Agreement restricts the repurchase of shares and payment of dividends through December 31, 2026.
• The Credit Agreement borrowing base primarily consists of a percentage of commercial land, land held for development, lots under development and finished lots held by the Company and its subsidiaries that guarantee the obligations under the Credit Agreement.