Quarterly report pursuant to Section 13 or 15(d)

Senior and Senior Subordinated Notes

 v2.3.0.11
Senior and Senior Subordinated Notes
 6 Months Ended
Jun. 30, 2011
Senior and Senior Subordinated Notes [Abstract]  
SENIOR AND SENIOR SUBORDINATED NOTES
NOTE 4 — SENIOR AND SENIOR SUBORDINATED NOTES
Senior and senior subordinated notes consist of the following (in thousands):
                 
    At     At  
    June 30, 2011     December 31, 2010  
6.25% senior notes due 2015. At June 30, 2011 and December 31, 2010, there was approximately $522 and $594 in unamortized discount, respectively
  $ 284,478     $ 284,406  
7.731% senior subordinated notes due 2017
    125,875       125,875  
7.15% senior notes due 2020. At June 30, 2011 and December 31, 2010, there was approximately $4,258 and $4,501 in unamortized discount, respectively
    195,742       195,499  
 
           
 
  $ 606,095     $ 605,780  
 
           
The indentures for our 6.25% senior notes and 7.731% senior subordinated notes contain covenants that require maintenance of certain minimum financial ratios, place limitations on investments we can make and the payment of dividends and redemptions of equity, and limit the incurrence of additional indebtedness, asset dispositions, mergers, certain investments and creations of liens, among other items. As of and for the quarter ended June 30, 2011, we believe we were in compliance with our covenants. The indenture for our 7.15% senior notes contains covenants including, among others, limitations on the amount of secured debt we may incur, and limitations on sale and leaseback transactions and mergers. The covenants contained in the 7.15% senior notes are generally no more restrictive, and in many cases less restrictive, than the covenants contained in the indentures for the 6.25% senior notes and 7.731% senior subordinated notes.
Obligations to pay principal and interest on the senior and senior subordinated notes are guaranteed by all of our wholly-owned subsidiaries (collectively, the “Guarantor Subsidiaries”), each of which is directly or indirectly 100% owned by Meritage Homes Corporation. Such guarantees are full and unconditional, and joint and several. We do not provide separate financial statements of the Guarantor Subsidiaries because Meritage (the parent company) and the guarantor subsidiaries comprise the significant majority of our assets and operations, and the non-guarantor subsidiaries, if any, individually and in the aggregate, minor, in both assets and operations. There are no significant restrictions on the ability of the Company or any Guarantor Subsidiary to obtain funds from their respective subsidiaries, as applicable, by dividend or loan.