LENNAR CORP /NEW/LEN
LENNAR CORP /NEW/ Debt Disclosure
Homebuilding Senior Notes and Other Debts Payable
| At November 30, | |||||||||||
| (Dollars in thousands) | 2025 | 2024 | |||||||||
| Unsecured delayed draw term loan facility due 2028 | $ | 1,710,000 | — | ||||||||
5.25% senior notes due 2026 | 400,608 | 401,824 | |||||||||
5.00% senior notes due 2027 | 350,590 | 350,974 | |||||||||
4.75% senior notes due 2027 | 698,845 | 698,266 | |||||||||
5.20% senior notes due 2030 | 694,165 | — | |||||||||
4.75% senior notes due 2025 | — | 499,779 | |||||||||
| Mortgage notes on land and other debt | 230,478 | 307,440 | |||||||||
| Total | $ | 4,084,686 | 2,258,283 | ||||||||
The carrying amounts of the senior notes in the table above are net of debt issuance costs of $7.0 million and $2.4 million, as of November 30, 2025 and 2024, respectively.
In May 2025, the Company issued $700 million in aggregate principal amount of 5.20% senior notes due 2030 (the "5.20% senior notes") at a price of 99.969% of the principal amount. Proceeds from the offering, after payment of expenses, totaled $695.6 million. The 5.20% Senior Notes are unsecured and unsubordinated, but are guaranteed by substantially all of the Company's 100% owned homebuilding subsidiaries. Interest on the 5.20% Senior Notes is due semi-annually beginning January 30, 2026.
The Company utilized the net proceeds from the sale of the 5.20% senior notes primarily to pay off $500 million aggregate principal amount of its 4.75% senior notes due May 2025. The redemption price, which was paid in cash, was 100% of the principal amount outstanding.
In May 2025, the Company also entered into a new unsecured delayed draw term loan facility with an initial committed borrowing availability of approximately $1.6 billion (the “Delayed Draw Term Loan Facility”), which can be increased by an additional $500 million via an accordion feature. In July 2025, the total commitment under the Delayed Draw Term Loan
Facility was increased by $100 million, thereby increasing the borrowing available capacity to $1.7 billion. The credit agreement governing the Company’s new unsecured Delayed Draw Term Loan Facility permits the Company to draw up to six times in the first 180 days after the effective date of the credit agreement. Once drawn, the Company may at any time prepay the loan, in whole or in part, without premium or penalty. The term loan’s maturity date is three years from the initial effectiveness date of the credit agreement or May 2028, and at the Company’s discretion, it can be extended for an additional year until May 2029, subject to the satisfaction of certain conditions. Under the Delayed Draw Term Loan Facility, interest rates equal the adjusted term SOFR determined for the interest period plus the applicable margin. As of November 30, 2025, the Company had outstanding borrowings of $1.7 billion under the credit agreement governing its new unsecured Delayed Draw Term Loan Facility.
In November 2024, the Company amended and restated the credit agreement governing its unsecured revolving credit facility (the "Credit Facility"). In the first quarter of 2025, the Company received an additional $150 million in commitments. In the third quarter of 2025, the Company secured an additional $100 million in commitments. The maximum available borrowings on the Credit Facility were as follows:
| (In thousands) | At November 30, 2025 | |||||||
| Commitments - maturing in May 2027 | $ | 225,000 | ||||||
| Commitments - maturing in November 2029 | 2,900,000 | |||||||
| Total commitments | $ | 3,125,000 | ||||||
| Accordion feature | 375,000 | |||||||
| Total maximum borrowings capacity | $ | 3,500,000 | ||||||
The proceeds available under the Credit Facility, which are subject to specified conditions for borrowing, may be used for working capital and general corporate purposes. The credit agreement also provides that up to $477.5 million in commitments may be used for letters of credit. As of both November 30, 2025 and 2024, the Company had no outstanding borrowings under the Credit Facility. Under the Credit Facility agreement, the Company is required to maintain a minimum consolidated tangible net worth, a maximum leverage ratio and either a liquidity or an interest coverage ratio. These ratios are calculated per the Credit Facility agreement, which involves adjustments to GAAP financial measures. The Company believes it was in compliance with its debt covenants at November 30, 2025. In addition to the Credit Facility, the Company has other letter of credit facilities with different financial institutions.
Performance letters of credit are generally posted with regulatory bodies to guarantee the Company’s performance of certain development and construction activities. Financial letters of credit are generally posted in lieu of cash deposits on option contracts, for insurance risks, credit enhancements and as other collateral. Additionally, at November 30, 2025, the Company had outstanding surety bonds including performance surety bonds related to site improvements at various projects (including certain projects of the Company’s joint ventures) and financial surety bonds. Although significant development and construction activities have been completed related to these site improvements, these bonds are generally not released until all development and construction activities are completed. The Company does not presently anticipate any draws upon these bonds or letters of credit, but if any such draws occur, the Company does not believe they would have a material effect on its financial position, results of operations or cash flows.
The Company's outstanding letters of credit and surety bonds are below:
| At November 30, | |||||||||||
| (In thousands) | 2025 | 2024 | |||||||||
| Performance letters of credit | $ | 1,963,643 | 1,668,061 | ||||||||
| Financial letters of credit | 926,304 | 745,578 | |||||||||
| Surety bonds | 5,614,807 | 5,140,432 | |||||||||
| Anticipated future costs primarily for site improvements related to performance surety bonds | 3,056,582 | 2,766,088 | |||||||||
The terms of each of the Company's senior notes outstanding at November 30, 2025 were as follows:
| Senior Notes Outstanding (1) | Principal Amount | Net Proceeds (2) | Price | Date Issued | ||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||
5.25% senior notes due 2026 | 400,000 | (3) | (3) | (3) | ||||||||||||||||||||||
5.00% senior notes due 2027 | 350,000 | (3) | (3) | (3) | ||||||||||||||||||||||
4.75% senior notes due 2027 (4) | 900,000 | 894,650 | 100 | % | November 2017 | |||||||||||||||||||||
5.20% senior notes due 2030 | 700,000 | 695,583 | 99.969 | % | May 2025 | |||||||||||||||||||||
(1)Interest is payable semi-annually for each of the series of senior notes. The senior notes are unsecured and unsubordinated, but are guaranteed by substantially all of the Company's 100% owned homebuilding subsidiaries.
(2)The Company generally has historically used the net proceeds for working capital and general corporate purposes, which can include the repayment or repurchase of other outstanding senior notes.
(3)These notes represent obligations of CalAtlantic when it was acquired that were subsequently exchanged in part for the notes of the Company. As part of the purchase accounting, the senior notes have been recorded at their fair value as of the date of acquisition (February 12, 2018).
(4)As of November 30, 2025, the principal amount remaining to be paid upon maturity was $700 million.
The Company's outstanding senior notes are guaranteed by certain of its wholly-owned subsidiaries, which are primarily homebuilding subsidiaries. These guarantees are full and unconditional. The guarantors of the Company's senior notes are currently those subsidiaries that also guarantee Lennar Corporation's letter of credit facilities, its Credit Facility and Delayed Draw Term Loan Facility. Under the indentures governing the Company's senior notes, guarantees may be suspended or released under certain circumstances.
The terms of the Company's mortgage on land and other debt at November 30, 2025 were as follows:
| At November 30, | Various Maturity Dates Through | Interest Rates Up To | Average Interest Rate | |||||||||||||||||||||||||||||
| (Dollars in thousands) | 2025 | 2024 | ||||||||||||||||||||||||||||||
| Carrying value | $ | 230,478 | 307,440 | 2031 | 7.5% | 4.8% | ||||||||||||||||||||||||||
| Retired during the year | 57,860 | 46,005 | ||||||||||||||||||||||||||||||
The minimum aggregate principal maturities of Delayed Draw Term Loan Facility, Homebuilding senior notes and other debts payable during the five years subsequent to November 30, 2025 and thereafter are as follows:
| (In thousands) | Debt Maturities | ||||
| 2026 | $ | 453,064 | |||
| 2027 | 1,191,758 | ||||
| 2028 | 1,720,214 | ||||
| 2029 | 11,463 | ||||
| 2030 | 702,196 | ||||
| Thereafter | 11,782 | ||||
The Company expects to pay its near-term maturities as they come due through either cash generated from operations, the issuance of additional debt or equity offerings or borrowings under the Company's Credit Facility.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jan 28, 2026 | Showing above |
| 2024 | Jan 23, 2025 | |
| 2023 | Jan 26, 2024 | |
| 2022 | Jan 26, 2023 | |
| 2021 | Jan 28, 2022 | |
| 2020 | Jan 22, 2021 | |
| 2019 | Jan 27, 2020 | |
| 2018 | Jan 28, 2019 | |
| 2017 | Jan 25, 2018 | |
| 2016 | Jan 20, 2017 | |
| 2015 | Jan 22, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.