Homebuilding Senior Notes And Other Debts Payable

12 Months Ended

Nov. 30, 2024

Debt Disclosure [Abstract]

Homebuilding Senior Notes And Other Debts Payable

Homebuilding Senior Notes and Other Debts Payable

	At November 30,
(Dollars in thousands)	2024		2023
4.75% senior notes due 2025	$	499,779	499,336
5.25% senior notes due 2026	401,824		403,040
5.00% senior notes due 2027	350,974		351,357
4.75% senior notes due 2027 (1)	698,266		797,347
4.50% senior notes due 2024	—		453,682
Mortgage notes on land and other debt	307,440		311,720
	$	2,258,283	2,816,482

(1)During the year ended November 30, 2024, the Company repurchased $100 million aggregate principal amount of senior notes due November 2027, through open market repurchases.

The carrying amounts of the senior notes in the table above are net of debt issuance costs of $2.4 million and $4.2 million, as of November 30, 2024 and 2023, respectively.

In April 2024, the Company redeemed $454 million aggregate principal amount of its 4.50% senior notes due April 2024. The redemption price, which was paid in cash, was 100% of the principal amount outstanding.

In April 2024, $350 million of the Company's unsecured revolving credit facility matured.

In November 2024, the Company amended and restated the credit agreement governing its unsecured revolving credit facility (the "Credit Facility"). The maximum available borrowings on the Credit Facility were as follows:

(In thousands)	At November 30, 2024
Commitments - maturing in May 2027	$	225,000
Commitments - maturing in November 2029	2,650,000
Total commitments	$	2,875,000
Accordion feature	625,000
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, 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, 2024. 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, 2024, 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)	2024		2023
Performance letters of credit	$	1,668,061	1,404,541
Financial letters of credit	745,578		417,976
Surety bonds	5,140,432		4,508,428
Anticipated future costs primarily for site improvements related to performance surety bonds	2,766,088		2,499,680

The terms of each of the Company's senior notes outstanding at November 30, 2024 were as follows:

Senior Notes Outstanding (1)	Principal Amount		Net Proceeds (2)	Price		Date Issued
(Dollars in thousands)
4.75% senior notes due 2025	$	500,000	495,528	100	%	April 2015
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

(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, 2024, the principal amount remaining to be paid upon maturity was $700 million.

All of the senior notes are guaranteed by certain of the Company's 100% owned subsidiaries, which are primarily the Company's homebuilding subsidiaries. Although the guarantees are full, unconditional and joint and several while they are in effect, (i) a subsidiary will have its guarantee suspended at any time when it is not directly or indirectly guaranteeing at least $75 million of debt of Lennar Corporation (the parent company) other than senior notes, 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.

The terms of the Company's mortgage on land and other debt at November 30, 2024 were as follows:

	At November 30,			Various Maturity Dates Through	Interest Rates Up To	Average Interest Rate
(Dollars in thousands)	2024		2023
Carrying value	$	307,440	311,720	2031	7.5%	4.4%
Retired during the year	46,005		11,835

The minimum aggregate principal maturities of Homebuilding senior notes and other debts payable during the five years subsequent to November 30, 2024 and thereafter are as follows:

(In thousands)	Debt Maturities
2025	$	532,097
2026	620,942
2027	1,062,192
2028	14,099
2029	11,463
Thereafter	16,647

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.