Quarterly report pursuant to Section 13 or 15(d)

Notes and Other Debts Payable, net

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Notes and Other Debts Payable, net
 3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
Notes and Other Debts Payable, net Notes and Other Debts Payable, net
Amounts outstanding under notes and other debts payable, net consist of the following:
March 31, 2024 December 31, 2023
(dollars in thousands)
11.0% Senior Notes
 $ 250,000  $ 250,000 
Discount and deferred loan costs (13,087) (13,857)
Senior notes, net $ 236,913  $ 236,143 
March 31, 2024 December 31, 2023
(dollars in thousands)
Line of credit facility $ 355,000  $ 315,000 
Deferred loan costs (6,763) (7,369)
Line of credit facility, net  $ 348,237  $ 307,631 
In October 2021, the Company entered into a line of credit agreement (the “Credit Agreement”). The Credit Agreement provides for a senior unsecured borrowing of up to $675.0 million of which there was $355.0 million outstanding as of March 31, 2024. The Company may increase the borrowing capacity up to $850.0 million, under certain conditions. Funds available under the Credit Agreement are subject to a borrowing base requirement which is calculated on specified percentages of our real estate inventories. Borrowings under the Credit Agreement bear interest at the Secured Overnight Financing Rate (“SOFR”) plus 3.35% or Prime Rate (as defined in the Credit Agreement) plus 2.75%. The interest rate includes a floor of 3.85%. The Credit Agreement was modified three times in 2022, which resulted in an increase in the borrowing commitment from $585.0 million to $675.0 million, the replacement of LIBOR with SOFR as an index rate, and an extension of the maturity date to October 2025. In July 2023, the Credit Agreement was modified to extend the maturity date to October 2026. As of March 31, 2024, the interest rate on the loan was 8.67%.
In July 2023, the Company entered into a senior unsecured note (the “Note Purchase Agreement”). The Note Purchase Agreement provided for the private placement of $250.0 million aggregate principal amount of 11.0% senior notes (the “11.0% Senior Notes”). The Company received the proceeds, net of discount and fees, in July 2023. The Senior Notes mature in July 2028.
The Credit Agreement and Note Purchase Agreement contain certain restrictive financial covenants, such as requirements for the Company to maintain a minimum liquidity balance, minimum tangible net worth, and leverage and interest coverage ratios. As of March 31, 2024, the Company was in compliance with all financial covenants.