The Pulte Group, the giant Bloomfield, Mich.-based home building firm, is terminating its $250 million revolving credit facility, effective March 30. The company will realize a charge of approximately $1.3 million associated with the change, which will be recorded in its first quarter financial results.
"Over the past 36 months, Pulte Group has paid down more than $3.1 billion of senior debt and other bond obligations," said Executive Vice President and Chief Financial Officer Roger A. Cregg. "With $1.5 billion in cash on our balance sheet at yearend, we have ample liquidity to fund current operations and near-term growth opportunities."
Cregg said the big builder expects to replace the facility within the next 12 to 18 months, "but (we) see this action as a way to further reduce operating costs."
The home builder also owns Pulte Mortgage, Englewood, Colo., which ranks 40th nationwide, among all residential lenders.
The Pulte brand has operations in 67 markets in 29 states and the District of Columbia. It builds as Pulte Homes, Centex and Del Webb.
