UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
June 27, 2008
Date of Report
(Date of earliest event reported)
THE RYLAND GROUP, INC.
(Exact Name of Registrant as Specified in Charter)
Maryland | | 001-08029 | | 52-0849948 |
(State or Other Jurisdiction of
Incorporation) | | (Commission File Number) | | (IRS Employer Identification No.) |
24025 Park Sorrento, Suite 400, Calabasas, California 91302
(Address of Principal Executive Offices) | | (ZIP Code) |
Registrant’s telephone number, including area code: (818) 223-7500
| Not Applicable | |
| (Former Name or Former Address, if Changed Since Last Report) | |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:
[ ] Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01 Entry into a Material Definitive Agreement
On June 27, 2008, The Ryland Group, Inc. (the “Company”) entered into the Third Amendment to Credit Agreement (the “Amendment”), among the Company, J.P. Morgan Chase Bank, N.A., as Agent, and the lenders listed therein, which amended its $750.0 million unsecured revolving credit facility. The Amendment, among other things: a) decreased the Company’s borrowing availability from $750.0 million to $550.0 million; b) reduced the base amount for the minimum consolidated tangible net worth covenant to $600.0 million; c) increased the pricing grid, which is based on the Company’s leverage ratio and public debt rating; d) adjusted the permitted leverage ratio to not be less than 55.0% for the fourth quarter of 2008 and the first quarter of 2009, 52.5% for the second, third and fourth quarters of 2009, and 50.0% in the first quarter of 2010 and thereafter; and e) changed the restriction of the Company’s book value of unsold land to 1.15x its consolidated tangible net worth. The Credit Agreement’s maturity date of January 2011 and the uncommitted accordion feature of $1.5 billion remain unchanged. This description of the Amendment is qualified in its entirety by reference to the full and complete terms contained in the Amendment, which is attached hereto as Exhibit 10.1.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit 10.1 | | Third Amendment to Credit Agreement, dated as of June 27, 2008, among the Company, the Agent and the lenders party thereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| THE RYLAND GROUP, INC. |
| |
| |
Date: July 2, 2008 | By: | /s/ Timothy J. Geckle |
| | Timothy J. Geckle |
| | Senior Vice President, General |
| | Counsel and Secretary |
EXHIBIT INDEX
Exhibit Number | | Description |
| | |
10.1 | | Third Amendment to Credit Agreement, dated as of June 27, 2008, among the Company, the Agent and the lenders party thereto. |
