LGIH · 10-Q · 2026Q1 · Full report
Letters of Credit and Bonds
LGI Homes, Inc. · 2026-04-28 · Importance 38 · Surprise 24
The Company maintains letters of credit, surety bonds and financial guarantees to secure performance under construction and development obligations, with outstanding amounts that fluctuate with development activity. Outstanding letters of credit, surety bonds and financial guarantees totaled $380.1 million as of March 31, 2026. Although many development and construction improvements are substantially complete at certain sites, these instruments generally are not released until final completion; the Company does not believe it is probable any of the outstanding instruments will be drawn upon as of March 31, 2026. The Company would be required to reimburse issuers in the event any such bonds or letters of credit are drawn.
Key facts
- As of March 31, 2026, $19.3 million of letters of credit were outstanding under the Credit Agreement.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| liability | negative | realized | — | As of March 31, 2026, $19.3 million of letters of credit were outstanding under the Credit Agreement. |