Company: UHG
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001830188-25-000036
Chunk: 122

Company: United Homes Group, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 2
Chunk 122
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 and “Off-Balance Sheet Arrangements” for additional information.

Capital Resources

Syndicated line of credit

The Syndicated Line provides for an aggregate commitment of up to $220.0 million, of which the Company had outstanding borrowings of $53.2 million as of March 31, 2025. The Syndicated Line also includes a $2.0 million letter of credit sub-facility under the same terms and conditions. The Company had $61.9 million of availability under the Syndicated Line, based on its borrowing base of $116.4 million. The borrowing base up to the aggregate commitment generates availability in accordance with the value of the collateral at a given point. The availability under the Syndicated Line, which impacts total liquidity, is reduced by outstanding letters of credit that are not fully cash collateralized. As of March 31, 2025, the Syndicated Line had a weighted average interest rate of 7.60% and will mature on August 2, 2027 except with respect to two non-extending lenders which represent $73.3 million of the committed amount and will mature August 10, 2026. 

The Syndicated Line contains various customary representations, warranties by the Company and covenants that are described in Note 6 - Debt of the Notes to the Condensed Consolidated Financial Statements contained in this report. As of March 31, 2025, the Company was in compliance with all covenants set forth in the Syndicated Line.

Term loan

In 2024, the Company entered into a Credit Agreement (the “Credit Agreement”) by and among the Company, GSH, Kennedy Lewis Agency Partners, LLC, as administrative agent, and the lenders party thereto (the “Lenders”) pursuant to which the Lenders thereunder funded a $70.0 million subordinated term loan, the proceeds of which were used to redeem the outstanding convertible promissory notes from the Selling Stockholders.

The term loan has an outstanding balance of $67.2 million as of March 31, 2025, and matures on the earlier of December 11, 2030, the maturity date under the Company’s Second Amended and Restated Credit Agreement, or the acceleration of indebtedness under the Syndicated Line. The weighted average interest rate of the loan was 11.61% as of March 31, 2025. Refer to Note 6 - Debt of the Notes to the Condensed Consolidated Financial Statements contained