Item 1.01. Entry into a Material Definitive Agreement
Financing Arrangements
On April 15, 2021 American Homes 4 Rent, L.P. ("
Borrower
"), the operating partnership of American Homes 4 Rent (the "
REIT
"), and the REIT, entered into an Amended and Restated Credit Agreement (the "
Credit Agreement
") with Wells Fargo Bank, National Association, as administrative agent (the "
Agent
"), the financial institutions party thereto as lenders (the "
Lenders
") and other agents party thereto, which Credit Agreement amends and restates
the existing Credit Agreement, dated as of August 17, 2016, among the Borrower,
the REIT, the Agent and the financial institutions party thereto as lenders and
agents party thereto (the "
Existing Credit Agreement
"). The Credit Agreement amends and restates the Existing Credit Agreement to,
among other things, (i) increase the aggregate principal amount available to be
borrowed under the revolving credit facility from $800 million to $1.25 billion,
(ii) extend the availability period of the revolving credit facility and the
maturity of the revolving credit facility, as more fully described below, and
(iii) include a sustainability adjustment component to the applicable margin. As
of April 15, 2021, $80,000,000 was outstanding under the revolving credit
facility.
Revolving loans under the Credit Agreement accrue interest at a per annum rate
equal to, at the Borrower's election, either a LIBOR rate plus a margin ranging
from 0.725% to 1.45% or a base rate (determined according to the greater of a
prime rate, federal funds rate plus 0.5% or daily LIBOR rate plus 1.0%) plus a
margin ranging from 0.00% to 0.45%. In each case, the actual margin is
determined according to the REIT's senior unsecured long term indebtedness
credit rating with Standard & Poor's and Moody's in effect from time to time
(the "
Credit Ratings
"). A facility fee at a rate ranging from 0.125% to 0.30% per annum applies to
the aggregate commitments under the revolving credit facility, regardless of
whether utilized, with such facility fee determined according to the REIT's
Credit Ratings. Loans owing under the Credit Agreement may be prepaid at any
time without premium or penalty, subject to customary breakage costs in the case
of borrowings with respect to which a LIBOR rate election is in effect. The
Credit Agreement also includes a sustainability component whereby the revolving
credit facility pricing can improve upon the REIT's achievement of certain
sustainability ratings, determined via an independent third-party evaluation.
The revolving credit facility under the Credit Agreement has an initial maturity
date of April 15, 2025, but may be extended by the Borrower for up to one year
through the exercise of two
six-month
extension options, in each case, subject to certain customary conditions and the
payment of an extension fee of 0.075% of the aggregate amount of the then
outstanding revolving commitments.
No subsidiaries of the Borrower are required to provide guaranties under the
Credit Agreement, other than certain subsidiaries that either (1) become
obligated in respect of other recourse indebtedness of the Borrower, the REIT,
or any subsidiary of the Borrower or (2) directly or indirectly own certain
unencumbered properties and become obligated in respect of recourse
indebtedness.
The Credit Agreement contains customary affirmative and negative covenants that,
among other things, require customary reporting obligations, contain obligations
for the REIT to maintain its REIT status, and restrict, subject to certain
exceptions, the incurrence of liens, the ability of Borrower, the REIT, and the
Borrower's subsidiaries to enter into mergers, consolidations, sales of assets
and similar transactions, the making of dividends and other distributions and
the consummation of transactions with affiliates. In addition, Borrower will be
subject to the following financial maintenance covenants: (1) maximum ratio of
total indebtedness to total asset value of 60%, subject to a temporary increase
of such level to 65% for up to four calendar quarters following a material
acquisition, (2) minimum ratio of EBITDA to fixed charges of 1.50 to 1.00, (3)
maximum ratio of secured indebtedness to total asset value of 40%, subject to a
temporary increase of such level to 45% for up to four calendar quarters
following a material acquisition, (4) maximum ratio of unsecured indebtedness to
unencumbered asset value (determined with respect to a pool of unencumbered
properties satisfying criteria specified in the Credit Agreement) of 60%,
subject to a temporary increase of such level to 65% for up to four calendar
quarters following a material acquisition, and (5) minimum ratio of net
operating income of certain unencumbered properties to unsecured interest
expense of 1.75 to 1.00.
The Credit Agreement contains events of default relating to customary matters,
including, among other things, payment defaults, covenant defaults, acceleration
of other material indebtedness, bankruptcy events,
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judgment defaults and change of control events. The occurrence of an event of
default will limit the ability of the Borrower to make distributions and may
result in the termination of the revolving credit facility, acceleration of
repayment obligations and the exercise of other remedies by the Lenders.
The foregoing description does not purport to be a complete description and is
qualified in its entirety by reference to the Credit Agreement, which is filed
herewith as Exhibit 10.1, and incorporated herein by reference.
From time to time, the REIT and the Borrower have had customary commercial
and/or investment banking relationships with Wells Fargo Bank, National
Association and/or certain of its affiliates.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-
Balance Sheet Arrangement of a Registrant.
The information set forth in Item 1.01 above under "Financing Arrangements" is
incorporated herein by reference.
Item 7.01 Regulation FD Disclosure
On April 19, 2021, the REIT issued a press release announcing the amendment to
the Credit Agreement. A copy of the press release is furnished as Exhibit 99.1
to this Current Report on Form
8-K
and incorporated by reference in this Item 7.01. The information contained in
this Item 7.01, including Exhibit 99.1 shall not be deemed "filed" with the U.S.
Securities and Exchange Commission nor incorporated by reference in any
registration statement filed by the REIT under the Securities Act of 1933, as
amended.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
The following exhibits are filed with this report:

Exhibit
Number       Description

10.1           Amended and Restated Credit Agreement, dated April 15, 2021, by and
             among American Homes 4 Rent, L.P., as Borrower, American Homes 4 Rent,
             as Parent, Wells Fargo Bank, National Association, as Agent, and the
             other lending institutions that are parties thereto, as Lenders.*

99.1           Press release dated April 19, 2021.

104          Cover Page Interactive Data File (embedded within the Inline XBRL
             document).

* Exhibits and schedules to this agreement have been omitted and will be

furnished supplementally upon request to the Securities and Exchange Commission

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