Pulte Mortgage, the home builder's residential lending arm, has paid back $100 million of its asset-backed commercial paper after Calyon, the bonds' administrative agent, called the debt on May 8, the company reported in a filing with the Securities and Exchange Commission.
Under the terms of the commercial paper agreements, any of the lenders have a right to terminate the program if any of the major ratings services rate the company's senior unsecured debt at or below Ba2 or BB. Standard & Poors has downgraded the company's debt to BB.
With its home sales and mortgage originations down, Pulte Mortgage said in the filing that it doesn't think it needs the credit anyway, that it has enough capacity through its revolving credit facility and other sources to meet its financing needs.
