NVR Inc.secured $200 million in total revolving loan commitments from a group of lenders.
Under an unsecured credit agreement signed July 15, the facilitymay be increased by up to $300 million in the form of revolving loan commitmentsor term loans. It has a $100 million sublimit for letters of credit issuance anda $25 million sublimit for a swing-line commitment.
As of July 18, no revolving loans were outstanding under thecredit agreement, which has a termination date of July 15, 2021. At NVR's option,borrowings under the facility may carry interest equal to LIBOR plus a margin rangeof 1.0% to 1.75%, or a base rate plus a margin range of zero percent to 0.75%, ineach case depending upon the homebuilder's debt rating.
The company will use the borrowing proceeds under the facilityfor working capital and general corporate purposes.
The lending group includes Bank of America NA as administrativeagent, swing line lender and L/C issuer and Merrill Lynch Pierce Fenner & SmithInc. as sole lead arranger and sole book runner.