Homebuilding Senior Notes and Other Debts Payable

3 Months Ended

Feb. 29, 2020

Homebuilding Senior Notes and Other Debts Payable



(Dollars in thousands)	February 29, 2020		November 30, 2019
Unsecured revolving credit facility	$	300,000	—
6.625% senior notes due 2020	301,651		303,668
2.95% senior notes due 2020	299,566		299,421
8.375% senior notes due 2021	414,600		418,860
4.750% senior notes due 2021	499,088		498,893
6.25% senior notes due December 2021	308,994		310,252
4.125% senior notes due 2022	598,133		597,885
5.375% senior notes due 2022	257,484		258,198
4.750% senior notes due 2022	571,806		571,644
4.875% senior notes due December 2023	396,853		396,553
4.500% senior notes due 2024	646,984		646,802
5.875% senior notes due 2024	446,990		448,158
4.750% senior notes due 2025	497,669		497,558
5.25% senior notes due 2026	407,618		407,921
5.00% senior notes due 2027	352,796		352,892
4.75% senior notes due 2027	893,234		893,046
Mortgage notes on land and other debt	922,032		874,887
	$	8,115,498	7,776,638

The carrying amounts of the senior notes in the table above are net of debt issuance costs of $21.2 million and $22.9 million as of February 29, 2020 and November 30, 2019, respectively.

At February 29, 2020, the Company had an unsecured revolving credit facility (the "Credit Facility") with maximum borrowings of $2.45 billion with $50 million maturing in June 2020 and the balance due in 2024. The Credit Facility agreement (the "Credit Agreement") provides that up to $500 million in commitments may be used for letters of credit. The maturity and details of the Credit Facility are unchanged from the disclosure in the Company's Financial Condition and Capital Resources section in its Form 10-K for the year ended November 30, 2019. Under the Credit 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 February 29, 2020. 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 February 29, 2020, the Company had outstanding surety bonds including performance surety bonds related to site improvements at various projects (including certain projects in 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 letter of credit and surety bond facilities are described below:



	February 29, 2020		November 30, 2019
(In thousands)
Performance letters of credit	$	739,944	715,793
Financial letters of credit	208,871		184,075
Surety bonds	2,966,393		2,946,167
Anticipated future costs related to site improvements related to performance surety bonds	1,440,444		1,427,145

The Company's senior notes are guaranteed by substantially all of the Company's 100% owned homebuilding subsidiaries and some of the Company's other subsidiaries. Although the guarantees are full, unconditional and joint and several while they are in effect, (i) a subsidiary will cease to be a guarantor at any time when it is not directly or indirectly guaranteeing at least $75 million of debt of Lennar Corporation (the parent company), and (ii) a subsidiary will be released from its guarantee and any other obligations it may have regarding the senior notes if all or substantially all its assets, or all of its capital stock, are sold or otherwise disposed of.