Millrose Properties, Inc. 8-K

What Happened
Millrose Properties, Inc. announced on March 25, 2026 that it entered into an Amended and Restated Credit Agreement with JPMorgan Chase Bank, N.A. as administrative agent and the lenders party thereto. The new agreement replaces the prior credit facility and provides a four‑year unsecured revolving credit commitment of $1.335 billion plus a $500 million delayed‑draw term loan (available in the first year), with loans maturing March 25, 2030. The company disclosed the deal in an 8‑K and issued a press release on March 27, 2026.

Key Details

• Total initial capacity: $1.335 billion revolving credit + $500 million delayed‑draw term loan; uncommitted accordion option can raise aggregate commitments up to $2.5 billion.
• Loans are unsecured; liens on assets that secured the prior credit agreement were released on the Effective Date. Net proceeds may be used for general corporate purposes, including repaying prior facility indebtedness.
• Interest: Adjusted Term SOFR + margin (2.00% / 2.25% / 2.50% depending on Leverage Ratio tiers); company may elect an Alternate Base Rate with a 1.00% lower margin. Borrowing availability is subject to a borrowing base tied to the value of company properties.
• Guarantees and covenants: Obligations guaranteed by Millrose SPE LLC and MPSAB, LLC; quarterly financial covenants include a maximum Leverage Ratio, a minimum interest coverage ratio and a minimum tangible net worth. The agreement requires the company to maintain REIT status and contains customary affirmative/negative covenants and events of default (including loss of manager Kennedy Lewis Land and Residential Advisors LLC without an acceptable replacement within 90 days).

Why It Matters
This transaction provides Millrose with extended, unsecured liquidity through March 2030 and flexibility to increase capacity up to $2.5 billion if needed. For investors, the facility reduces near‑term refinancing risk and clarifies available capital for operations and repayment of the prior facility. However, borrowing costs will vary with market SOFR and the company’s leverage (which also affects margin bands), and the agreement’s financial covenants and other restrictions could limit distributions, additional borrowing or certain transactions if covenants are not met.