United Homes Group amends credit agreements with Wells Fargo and Kennedy Lewis

United Homes Group, Inc. (NASDAQ:UHG), a homebuilder with a market capitalization of $244 million and current stock price of $4.10, announced Monday that it has entered into amendments to two of its major credit agreements, according to a press release statement based on a recent SEC filing. InvestingPro analysis indicates the company is currently trading near its Fair Value, with strong financial health metrics including a current ratio of 3.91, demonstrating solid liquidity position.

On September 29, 2025, United Homes Group executed the Fourth Amendment to its Second Amended and Restated Credit Agreement with Wells Fargo Bank, National Association, and other lenders. The amendment modifies certain financial covenants through January 1, 2026, or earlier if specific financial ratios are met. According to InvestingPro data, the company has demonstrated strong momentum with a 44.91% price return over the past six months, suggesting investor confidence in its financial management. Get access to 8 more exclusive ProTips and comprehensive analysis with an InvestingPro subscription.

Key changes include an increase in the minimum Tangible Net Worth requirement to $76,005,357 during the amendment period, plus additional amounts based on a percentage of positive consolidated earnings, new equity contributions, conversions of debt to equity, and repurchases of equity interests. The minimum Debt Service Coverage Ratio is set at 1.35 to 1.00 for the quarter ending September 30, 2025, and 1.50 to 1.00 for the quarter ending December 31, 2025. The amendment also raises the minimum liquidity threshold to $45 million and the minimum unrestricted cash threshold to $17.5 million for the specified period.

On the same day, United Homes Group also entered into the First Amendment to its Credit Agreement with Kennedy Lewis Agency Partners LLC and related lenders. This amendment clarifies the calculation of certain premiums payable in connection with prepayments or changes of control. Specifically, it details how the Make-Whole Premium and Applicable Premium are to be calculated, including a reduction in the Applicable Premium by 50% in the event of repayment due to a change of control.

Additionally, the amendment sets the minimum Debt Service Coverage Ratio at 1.35 to 1.00 through December 31, 2025, but allows for up to two instances where the ratio may fall to 1.20 to 1.00, provided specific conditions are met.

Both amendments are effective as of September 29, 2025. United Homes Group’s Class A common shares and warrants trade on The Nasdaq Stock Market LLC under the symbols UHG and UHGWW, respectively.

All information is based on a press release statement and the company’s filing with the Securities and Exchange Commission.

In other recent news, United Homes Group Inc. announced its financial results for the second quarter of 2025. The company reported earnings that met analysts’ expectations, reflecting stable performance in its financial operations. Revenue figures for the quarter also aligned with projections, indicating consistent market demand. Additionally, there have been no major mergers or acquisitions reported by United Homes Group in this period.

Analyst firms have not provided any upgrades or downgrades for United Homes Group, suggesting a steady outlook for the company. Other developments include the continuation of strategic initiatives aimed at maintaining operational efficiency. The earnings call was conducted with no significant disruptions, and the company remains focused on its future goals. These recent developments provide investors with a clear picture of United Homes Group’s current standing.

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