Olympic USA Joins Homebuilders In Revolver Expansion

Technical Olympic USA (TOUSA) has joined a slew of other homebuilders in significantly increasing its borrowing capacity.

  • 29 Oct 2004
Email a colleague
Request a PDF
David Keller
Technical OlympicUSA (TOUSA) has joined a slew of other homebuilders in significantly increasing its borrowing capacity. The Hollywood, Fla.-based company has replaced its $350 million revolver with a new four-year, $600 million line that has a $150 million accordion feature.

David Keller, TOUSA's cfo, said the syndication process started when the homebuilder contacted lead Citigroup and showed interest in negotiating a larger revolver and improving pricing. He added that a number of homebuilders have increased their credit facilities in the past year, adding that this was an opportunity for the company to also lock in future resources. M/I Homes, Toll Brothers, M.D.C. Holdings and WCI Communities, have also put in place increased bank lines as they try and sustain big year-on-year gains (LMW, 11/11). "The market is receptive to this type of credit right now," Keller noted. He declined to provide pricing, but said improved terms are a reflection of the company's better financial results and position.

Deutsche Bank has joined Citigroup as a lead on the facility. While Citigroup led TOUSA's previous financing, Deutsche Bank served as a member of the syndicate and was brought into a lead spot as the bank provided additional borrowing capacity and because of the previous relationship, Keller stated. David Bouton at Citigroup and Deutsche Bank's Richard Grellier arranged the financing, he said. Fourteen other banks also participate in the new credit line and four lenders are new. J.P. Morgan, PNC Bank, Sovereign Bank and Bank of the West. Bank United of Florida was the only lender that dropped out as TOUSA was not able to meet the bank's yield requirements, he explained.

Meanwhile, TOUSA's mortgage company, Preferred Home Mortgage Company, entered into a one-year, $100 million mortgage warehouse credit. This facility also carries a $50 million accordion feature. The mortgage facility was provided by Countrywide Homeloans and will finance mortgages for TOUSA's homebuyers.

  • 29 Oct 2004

New! GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Citi 7,029 20 10.95
2 Bank of America Merrill Lynch (BAML) 6,703 19 10.45
3 JP Morgan 4,776 10 7.44
4 Credit Suisse 4,718 9 7.35
5 Deutsche Bank 4,262 13 6.64

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 17 Oct 2016
1 Wells Fargo Securities 67,591.81 167 11.54%
2 Bank of America Merrill Lynch 57,568.62 162 9.83%
3 JPMorgan 55,390.36 159 9.46%
4 Citi 55,051.46 160 9.40%
5 Credit Suisse 43,756.73 120 7.47%