Columbus, Ohio-based home builder M/I Homes said it has renegotiated the terms of a credit agreement with JP Morgan Chase, allowing the home builder to borrow $500,000 under its credit line, down from a credit line of $650,000.
As part of the agreement, M/I Homes can lower its interest coverage ratio, according to the company’s filing with the Securities and Exchange Commission, which could result in lower interest payments.
M/I Homes most recently reported a second quarter loss of $42.6 million, compared with profit of $18.3 million in the same period last year. The company was hit with $72.1 million in charges, mostly related to abandoning land option contracts.
Additionally, the company saw the number of homes delivered in the second quarter fall 24 percent, from 987 homes last year to 755. New contracts were down 10 percent to 688 from 764 last year.
M/I Homes builds single-family homes in Ohio, Illinois, Indiana, Florida, North Carolina, Delaware, Virginia, Maryland and Washington D.C.