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Homebuilding Senior Notes And Other Debts Payable
 12 Months Ended
Nov. 30, 2023
Debt Disclosure [Abstract]  
Homebuilding Senior Notes And Other Debts Payable Homebuilding Senior Notes and Other Debts Payable
November 30,
(Dollars in thousands)20232022
4.500% senior notes due 2024 (1)
$453,682 648,975 
4.750% senior notes due 2025
499,336 498,892 
5.25% senior notes due 2026
403,040 404,257 
5.00% senior notes due 2027
351,357 351,741 
4.75% senior notes due 2027 (1)
797,347 896,259 
4.875% senior notes due December 2023
— 399,169 
5.875% senior notes due 2024
— 434,128 
Mortgage notes on land and other debt311,720 413,873 
$2,816,482 4,047,294 
(1)During the year ended November 30, 2023, the Company repurchased $196.1 million and $100.0 million aggregate principal amount of 4.500% senior notes due April 2024 and 4.75% senior notes due November 2027, respectively, through open market repurchases.
The carrying amounts of the senior notes in the table above are net of debt issuance costs of $4.2 million and $7.6 million, as of November 30, 2023 and 2022, respectively.
In November 2023, the Company redeemed $378 million aggregate principal amount of its 4.875% senior notes due December 2023 at an early redemption price of 100% of the principal amount outstanding. In addition, during the year ended November 30, 2023, the Company repurchased $21.8 million aggregate principal amount of these senior notes through open market repurchases.
In August 2023, the Company redeemed $425 million aggregate principal amount of its 5.875% senior notes due November 2024 at an early redemption price of 100% of the principal amount outstanding using cash on hand, resulting in a pre-tax gain of $6.0 million, included in Homebuilding other income (expense), net.
The maximum available borrowings on the Company's unsecured revolving credit facility (the "Credit Facility") were as follows:
(In thousands)November 30, 2023
Commitments - maturing in April 2024$350,000 
Commitments - maturing in May 20272,225,000 
Total commitments$2,575,000 
Accordion feature425,000 
Total maximum borrowings capacity$3,000,000 
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 $500 million in commitments may be used for letters of credit. As of both November 30, 2023 and 2022, 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, 2023. 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, 2023, 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:
November 30,
(In thousands)20232022
Performance letters of credit$1,404,541 1,259,033 
Financial letters of credit417,976 503,659 
Surety bonds4,508,428 4,136,715 
Anticipated future costs primarily for site improvements related to performance surety bonds2,499,680 2,273,694 
The terms of each of the Company's senior notes outstanding at November 30, 2023 were as follows:
Senior Notes Outstanding (1)Principal AmountNet Proceeds (2)PriceDate Issued
(Dollars in thousands)
4.500% senior notes due 2024
$650,000 $644,838 100 %April 2017
4.750% 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
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).
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, 2023 were as follows:
As of November 30,Various Maturity Dates ThroughInterest Rates Up ToAverage Interest Rate
(Dollars in thousands)20232022
Carrying value$311,720 413,873 20317.5%4.6%
Retired during the year11,835 48,079 
The minimum aggregate principal maturities of Homebuilding senior notes and other debts payable during the five years subsequent to November 30, 2023 and thereafter are as follows:
(In thousands)Debt Maturities
2024$483,415 
2025673,859 
2026455,961 
20271,165,021 
20283,974 
Thereafter33,355 
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.