ARLINGTON, Texas, March 31 /PRNewswire-FirstCall/ -- D.R. Horton, Inc.
(NYSE: DHI) Monday (March 31, 2003), today announced that holders of Zero
Coupon Convertible Senior Notes due 2021 issued by the Company have the right
to surrender their notes for purchase by the Company beginning today and
running through 5:00 p.m., New York City time, May 12, 2003. Under terms
governing the notes, each holder has the right to require the Company to
purchase on May 12, 2003 all or a part of such holder's notes at a purchase
price of $559.73 in cash per $1,000 principal amount at maturity. The notes
surrendered for purchase by the Company must be in the principal amount of
$1,000 or an integral multiple thereof. If all outstanding notes are
surrendered for purchase, the aggregate cash purchase price will be
approximately $213.3 million. At the end of its first fiscal quarter ended
December 31, 2002, D.R. Horton had approximately $868 million in homebuilding
cash, cash equivalents and available unsecured revolving credit facility. The
notes are not currently convertible into shares of D.R. Horton, Inc. common
stock.
To surrender notes, a purchase notice must be delivered to American Stock
Transfer & Trust Company, the paying agent for the offer. Holders of notes
complying with the transmittal procedures of the Depository Trust Company need
not submit a physical purchase notice to the paying agent. Holders may
withdraw any notes previously surrendered for purchase at any time prior to
5:00 p.m., New York City time, May 12, 2003.
The purchase price is based solely on the terms governing the notes and
bears no relationship to the market price of the notes or our common stock.
Thus, the purchase price may be significantly higher or lower than the current
market price of the notes. You are urged to obtain the best available
information as to potential current market prices of the notes and our common
stock before making a decision whether to surrender your notes for purchase.
A Tender Offer Statement on Schedule TO relating to the Company's purchase
will be filed with the Securities and Exchange Commission (SEC) later today.
The Schedule TO will include information on the terms, conditions and
procedures for surrendering for purchase and withdrawing the notes. These
documents will be mailed today to each of the registered beneficial holders of
the notes, including to DTC, the sole registered record holder. Note holders
can also obtain free copies of these documents through the website maintained
by the SEC at www.sec.gov , or from D.R. Horton by contacting our Investor
Relations department at (817) 856-8200. Note holders are encouraged to read
these documents carefully before making any decision with respect to the
surrender of notes, because these documents contain important information
regarding the details of the Company's obligation to purchase the notes.
This press release is neither an offer to purchase nor a solicitation of
an offer to sell securities and no recommendation is made as to whether or not
holders of notes should surrender their notes for purchase. The offer is made
only by the Company Notice dated March 31, 2003 and related documents (as they
may be amended from time to time), being filed with the SEC as exhibits to the
Tender Offer Statement on Schedule TO.
Founded in 1978, D.R. Horton, Inc. is engaged in the construction and sale
of high quality homes designed principally for the entry-level and first time
move-up markets. D.R. Horton currently builds and sells homes under the D.R.
Horton, Arappco, Cambridge, Continental, Dietz-Crane, Dobson, Emerald, Melody,
Milburn, Schuler, SGS Communities, Stafford, Torrey, Trimark, and Western
Pacific names in 20 states and 44 markets, with a geographic presence in the
Midwest, Mid-Atlantic, Southeast, Southwest and Western regions of the United
States. The Company also provides mortgage financing and title services for
homebuyers through its mortgage and title subsidiaries.
Portions of this document may constitute "forward-looking statements" as
defined by the Private Securities Litigation Reform Act of 1995. Although
D.R. Horton believes any such statements are based on reasonable assumptions,
there is no assurance that actual outcomes will not be materially different.
All forward-looking statements are based upon information available to D.R.
Horton on the date this release was issued. D.R. Horton does not undertake
any obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise. Factors
that may cause the actual results to be materially different from the future
results expressed by the forward-looking statements include, but are not
limited to: changes in general economic, real estate and business conditions;
changes in interest rates and the availability of mortgage financing;
governmental regulations and environmental matters; the Company's substantial
leverage; competitive conditions within the industry; the availability of
capital to the Company on favorable terms; the Company's ability to integrate
its acquisitions and successfully effect the cost savings, operating
efficiencies and revenue enhancements that are believed available and
otherwise to successfully effect its other growth strategies. Additional
information about issues that could lead to material changes in performance is
contained in D.R. Horton's annual report on Form 10-K and the most recent Form
10-Q, both of which were filed with the Securities and Exchange Commission.
www.DRHORTON.com
SOURCE D.R. Horton, Inc.
