Quarterly report [Sections 13 or 15(d)]

SENIOR NOTES, NET

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SENIOR NOTES, NET
3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
SENIOR NOTES, NET SENIOR AND CONVERTIBLE SENIOR NOTES, NET
Senior and convertible senior notes, net consist of the following (in thousands):
As of
March 31, 2026 December 31, 2025
5.125% senior notes due 2027 ("2027 Notes")
300,000  300,000 
1.750% convertible senior notes due 2028 ("2028 Convertible Notes")
575,000  575,000 
3.875% senior notes due 2029 ("2029 Notes")
450,000  450,000 
5.650% senior notes due 2035 ("2035 Notes"). At March 31, 2026, there was $2,501 in net unamortized discount.
497,499  497,429 
Net debt issuance costs (16,215) (17,703)
Total $ 1,806,284  $ 1,804,726 
There have been no material changes to the terms of the 2028 Convertible Notes and the related capped call transactions since those described in Note 7 - Senior and Convertible Senior Notes, Net in the consolidated financial statements included in our Annual Report. During the three months ended March 31, 2026, the circumstances allowing holders of the 2028 Convertible Notes to convert were not met.
The indentures for our 2027 Notes, 2029 Notes and 2035 Notes contain covenants that place limits on secured debt and sale and leaseback transactions. We were in compliance with all such covenants as of March 31, 2026.
Obligations to pay principal and interest on the senior and convertible senior notes are guaranteed by substantially all of our wholly-owned subsidiaries (each a “Guarantor” and, collectively, the “Guarantor Subsidiaries”), each of which is directly or indirectly 100% owned by Meritage Homes. Such guarantees are full and unconditional, and joint and several. In the event of a sale or other disposition of all of the assets of any Guarantor, by way of merger, consolidation or otherwise, or a sale or other disposition of all of the equity interests of any Guarantor then held by Meritage and its subsidiaries, then that Guarantor may be released and relieved of any obligations under its note guarantee. There are no significant restrictions on our ability or the ability of Meritage Homes or any Guarantor to obtain funds from their respective subsidiaries, as applicable, by dividend or loan. We do not provide separate financial statements of the Guarantor Subsidiaries because Meritage Homes (the parent company) has no independent assets or operations and the guarantees are full and unconditional and joint and several. Subsidiaries of Meritage Homes Corporation that are non-guarantor subsidiaries are, individually and in the aggregate, minor, and accordingly, the assets, liabilities and results of operations of Meritage Homes Corporation and the Guarantor Subsidiaries
are not materially different than the corresponding amounts presented in the unaudited consolidated financial statements of Meritage Homes.