Debt and Credit Facilities

3 Months Ended

Mar. 31, 2012

Debt and Credit Facilities

Debt and Credit Facilities

Note 10.  Debt and Credit Facilities

The following table presents the composition of the Company’s homebuilder debt and its financial services credit facility at March 31, 2012 and December 31, 2011:

	MARCH 31,			DECEMBER 31,
(in thousands)	2012			2011
Senior notes
6.9 percent senior notes due June 2013	$	167,182		$	167,182
5.4 percent senior notes due January 2015	126,481			126,481
8.4 percent senior notes due May 2017	230,000			230,000
6.6 percent senior notes due May 2020	300,000			300,000
Total senior notes	823,663			823,663
Debt discount	(3,495		)	(3,647		)
Senior notes, net	820,168			820,016
Secured notes payable	2,629			3,811
Total debt	$	822,797		$	823,827
Financial services credit facility	$	32,330		$	49,933

At March 31, 2012, the Company had outstanding (a) $167.2 million of 6.9 percent senior notes due June 2013; (b) $126.5 million of 5.4 percent senior notes due January 2015; (c) $230.0 million of 8.4 percent senior notes due May 2017; and (d) $300.0 million of 6.6 percent senior notes due May 2020. Each of the senior notes pays interest semiannually and may be redeemed at a stated redemption price, in whole or in part, at the option of the Company at any time.

To provide letters of credit required in the ordinary course of its business, the Company has various secured letter of credit agreements that require it to maintain restricted cash deposits for outstanding letters of credit. Outstanding letters of credit totaled $60.8 million and $66.0 million under these agreements at March 31, 2012 and December 31, 2011, respectively.

To finance its land purchases, the Company may also use seller-financed nonrecourse secured notes payable. At March 31, 2012 and December 31, 2011, outstanding seller-financed nonrecourse secured notes payable totaled $2.6 million and $3.8 million, respectively.

Senior notes and indenture agreements are subject to certain covenants that include, among other things, restrictions on additional secured debt and the sale of assets. The Company was in compliance with these covenants at March 31, 2012.

In 2011, RMC entered into a $50.0 million repurchase credit facility with JPMorgan Chase Bank, N.A. (“JPM”). This facility is used to fund, and is secured by, mortgages that were originated by RMC and are pending sale. This facility will expire in December 2012. Under the terms of this facility, RMC is required to maintain various financial and other covenants and to satisfy certain requirements relating to the mortgages securing the facility. At March 31, 2012, the Company was in compliance with these covenants. Outstanding borrowings against this credit facility totaled $32.3 million and $49.9 million at March 31, 2012 and December 31, 2011, respectively.