Debt and Credit Facilities

3 Months Ended

Mar. 31, 2013

Note 11. Debt and Credit Facilities

The following table presents the composition of the Company’s homebuilder debt at March 31, 2013 and December 31, 2012:

	MARCH 31,		DECEMBER 31,
(in thousands)	2013		2012
Senior notes
5.4 percent senior notes due January 2015	$	126,481	$	126,481
8.4 percent senior notes due May 2017	230,000		230,000
1.6 percent convertible senior notes due May 2018	225,000		225,000
6.6 percent senior notes due May 2020	300,000		300,000
5.4 percent senior notes due October 2022	250,000		250,000
Total senior notes	1,131,481		1,131,481
Debt discount	(2,846)		(3,000		)
Senior notes, net	1,128,635		1,128,481
Secured notes payable	4,525		5,987
Total debt	$	1,133,160	$	1,134,468

At March 31, 2013, the Company had outstanding (a) $126.5 million of 5.4 percent senior notes due January 2015; (b) $230.0 million of 8.4 percent senior notes due May 2017; (c) $225.0 million of 1.6 percent convertible senior notes due May 2018; (d) $300.0 million of 6.6 percent senior notes due May 2020; and (e) $250.0 million of 5.4 percent senior notes due October 2022. Each of the senior notes pays interest semiannually and all, except for the convertible senior notes, 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 $80.5 million and $79.5 million under these agreements at March 31, 2013 and December 31, 2012, respectively.

To finance its land purchases, the Company may also use seller-financed nonrecourse secured notes payable. At March 31, 2013 and December 31, 2012, outstanding seller-financed nonrecourse secured notes payable totaled $4.5 million and $6.0 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, 2013.

During 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. During 2012, this facility was increased to $75.0 million and extended to December 2013. 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, 2013, the Company was in compliance with these covenants. The Company had no outstanding borrowings against this credit facility at March 31, 2013 and December 31, 2012.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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