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Notes Payable (Tables)
12 Months Ended
Sep. 30, 2021
Debt Disclosure [Abstract]  
Summary of notes payable at principal amounts, net of unamortized discounts
The Company’s notes payable at their carrying amounts consist of the following:
 September 30,
 20212020
 (In millions)
Homebuilding:  
Unsecured:  
Revolving credit facility$— $— 
364-day revolving credit facility (1)
— — 
2.55% senior notes due 2020 (2)
— 399.8 
4.375% senior notes due 2022 (2)
349.6 349.2 
4.75% senior notes due 2023 (2)
299.5 299.2 
5.75% senior notes due 2023 (2)
399.1 398.7 
2.5% senior notes due 2024 (2)
497.3 496.5 
2.6% senior notes due 2025 (2)
496.2 495.1 
1.3% senior notes due 2026 (2)
594.5 — 
1.4% senior notes due 2027 (2)
494.9 — 
Other secured notes (3)
82.2 71.1 
3,213.3 2,509.6 
Forestar:  
Unsecured:
Revolving credit facility— — 
8.0% senior notes due 2024 (4)(5)
— 345.2 
3.85% senior notes due 2026 (5)
395.5 — 
5.0% senior notes due 2028 (5)
296.5 295.9 
Other secured notes12.5 — 
704.5 641.1 
Financial Services:
Mortgage repurchase facility1,494.6 1,132.6 
$5,412.4 $4,283.3 
_____________
See footnotes on following page.
(1)The Company’s $375 million 364-day senior unsecured homebuilding revolving credit facility was not renewed upon its maturity in May 2021.
(2)Debt issuance costs that were deducted from the carrying amounts of the homebuilding senior notes totaled $16.5 million and $10.7 million at September 30, 2021 and 2020, respectively.
(3)Homebuilding other secured notes excludes $0.7 million and $4.8 million of earnest money notes payable to Forestar at September 30, 2021 and 2020, respectively. These intercompany notes are eliminated in consolidation.
(4)Forestar’s 8.0% senior notes due April 2024 were redeemed in May 2021.
(5)Debt issuance costs that were deducted from the carrying amount of Forestar’s senior notes totaled $8.0 million and $8.9 million at September 30, 2021 and 2020, respectively.
Summary of notes payable terms
The key terms of the Company’s homebuilding senior notes outstanding as of September 30, 2021 are summarized below.
Notes PayablePrincipal AmountDate IssuedDate DueRedeemable
Prior to
Maturity (1)
Effective
Interest Rate (2)
 (In millions)    
4.375% senior notes$350September 2012September 15, 2022Yes4.5%
4.75% senior notes$300February 2013February 15, 2023Yes4.9%
5.75% senior notes$400August 2013August 15, 2023Yes5.9%
2.5% senior notes$500October 2019October 15, 2024Yes2.7%
2.6% senior notes$500May 2020October 15, 2025Yes2.8%
1.3% senior notes$600August 2021October 15, 2026Yes1.5%
1.4% senior notes$500October 2020October 15, 2027Yes1.6%
_____________
(1)The Company may redeem the notes in whole at any time or in part from time to time, at a redemption price equal to the greater of 100% of their principal amount or the present value of the remaining scheduled payments discounted to the redemption date, plus accrued and unpaid interest. In addition, the 4.375% senior notes, 4.75% senior notes and 5.75% senior notes are redeemable at a redemption price of 100% of their principal amount, plus accrued and unpaid interest, on or after the date that is three months prior to the final maturity date of the notes. The 2.5% senior notes, the 2.6% senior notes and the 1.3% senior notes are redeemable at a redemption price of 100% of their principal amount, plus accrued and unpaid interest, on or after the date that is one month prior to the final maturity date of the notes. The 1.4% senior notes are redeemable at a redemption price of 100% of their principal amount, plus accrued and unpaid interest, on or after the date that is two months prior to the final maturity of the notes.
(2)Interest is payable semi-annually on each of the series of senior notes. The annual effective interest rate is calculated after giving effect to the amortization of debt issuance costs and the discount, if applicable.