Company: LEN
Filing Date: 2025-01-23
Form Type: 10-K
Source: 0001628280-25-002404
Chunk: 160

Company: LENNAR CORP /NEW/
Filing Date: 2025-01-23
Form: 10-K
Item: Item 7
Chunk 160
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 2025.

Our Homebuilding senior notes and other debts payable are summarized within Note 4 of the Notes to Consolidated Financial Statements. 

In November 30, 2024, we amended and restated the credit agreement governing our Credit Facility. The maximum available borrowings on our Credit Facility were as follows:

(In thousands)At November 30, 2024Commitments - maturing in May 2027$225,000 Commitments - maturing in November 20292,650,000 Total commitments$2,875,000 Accordion feature625,000 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, 2024 and 2023, we had no outstanding borrowings under the Credit Facility. In addition to the Credit Facility, we have other letter of credit facilities with different financial institutions.

We often post letters of credit instead of making cash deposits for option contracts and for similar purposes. We often are required to post surety bonds to guarantee completion of projects, particularly when municipal authorities are involved. Our outstanding letters of credit and surety bonds are described below:

At November 30,(In thousands)20242023Performance letters of credit$1,668,061 1,404,541 Financial letters of credit745,578 417,976 Surety bonds5,140,432 4,508,428 Anticipated future costs primarily for site improvements related to performance surety bonds2,766,088 2,499,680 

37

Our Homebuilding average debt outstanding and the average rates of interest were as follows:

At November 30,(Dollars in thousands)20242023Homebuilding average debt outstanding $2,449,576 3,688,363 Average interest rate4.8%4.9%Interest incurred$129,310 187,640 

 Under the Credit Facility agreement (the "Credit Agreement"), we are 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. As of the end of each fiscal quarter, we are required to maintain minimum consolidated tangible