Attached files

file filename
8-K - 8-K - HORTON D R INC /DE/d15881d8k.htm
EX-5.1 - EX-5.1 - HORTON D R INC /DE/d15881dex51.htm
EX-4.1 - EX-4.1 - HORTON D R INC /DE/d15881dex41.htm
EX-1.1 - EX-1.1 - HORTON D R INC /DE/d15881dex11.htm

Exhibit 5.2

October 2, 2020

D.R. Horton, Inc.

1341 Horton Circle

Arlington, TX 76011

 

Re:

D.R. Horton, Inc. Public Offering of $500,000,000 Principal Amount of its 1.400% Senior Notes due 2027

Registration Statement on Form S-3 (File No. 333-226644)

Ladies and Gentlemen:

We have acted as counsel to D.R. Horton, Inc., a Delaware corporation (the “Company”), and certain of its subsidiaries and affiliates listed on Annex A hereto (the “Guarantors”) in connection with the preparation and filing with the Securities and Exchange Commission (the “Commission”) of a Registration Statement on Form S-3, file no. 333-226644 (the “Registration Statement”), under the Securities Act of 1933, as amended (the “Securities Act”), the prospectus included therein, the prospectus supplement, dated September 29, 2020, filed with the Commission on October 1, 2020 pursuant to Rule 424(b) of the Securities Act (the “Prospectus Supplement”), and the offering by the Company pursuant thereto of $500,000,000 principal amount of the Company’s 1.400% Senior Notes due 2027 (the “Notes”).

The Notes will be issued pursuant to the Indenture, dated as of October 10, 2019 (the “Base Indenture”), between the Company and Truist Bank (formerly known as Branch Banking and Trust Company), as trustee (the “Trustee”), as modified in respect of the Notes by the Third Supplemental Indenture, to be dated as of October 2, 2020 (the “Supplemental Indenture” and together with the Base Indenture, the “Indenture”) among the Company, the Guarantors and the Trustee, and are guaranteed pursuant to the terms of the Indenture and the notation endorsed on the Notes by the Guarantors (the “Guarantees”). The Notes have been offered pursuant to an Underwriting Agreement dated as of September 29, 2020 (the “Underwriting Agreement”) among the Company, the Guarantors and the Underwriters named therein (the “Underwriters”).

In arriving at the opinions expressed below, we have examined originals, or copies certified or otherwise identified to our satisfaction as being true and complete copies of the originals, of the Base Indenture, the Supplemental Indenture, the Notes and the Guarantees (collectively, the “Note Documents”) and such other documents, corporate records, certificates of officers of the Company, the Guarantors and of public officials and other instruments as we have deemed necessary or advisable to enable us to render these opinions. In our examination, we have assumed, without independent investigation, the genuineness of all signatures, the legal capacity and competency of all natural persons, the authenticity of all documents submitted to us as originals and the conformity to original documents of all documents submitted to us as copies. To the extent that our opinions may be dependent upon


D.R. Horton, Inc.

October 2, 2020

Page 2

 

such matters, we have assumed, without independent investigation, that each of the Guarantors identified on Annex A that is not a Specified Guarantor is validly existing under the laws of its jurisdiction of incorporation, has all requisite corporate or other entity power to execute, deliver and perform its obligations under the Note Documents to which it is a party; that the execution and delivery of such documents by each such party and the performance of its obligations thereunder have been duly authorized by all necessary corporate or other action and do not violate any law, regulation, order, judgment or decree applicable to each such party; and that such documents have been duly executed and delivered by each such party. As to any facts material to these opinions, we have relied to the extent we deemed appropriate and without independent investigation upon statements and representations of officers and other representatives of the Company and the Guarantors and on certificates and representations obtained from public officials and others.

Based upon the foregoing, and subject to the assumptions, exceptions, qualifications and limitations set forth herein, we are of the opinion that the Notes, when authenticated in accordance with the provisions of the Indenture and delivered to and paid for by the Underwriters in accordance with the terms of the Underwriting Agreement, will be legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their respective terms, and when the Notes with the Guarantees endorsed thereon have been duly authenticated in accordance with the provisions of the Indenture and delivered to and paid for by the Underwriters in accordance with the terms of the Underwriting Agreement, the Guarantees of the Notes will be legal, valid and binding obligations of the Guarantors obligated thereon, enforceable against such Guarantors in accordance with their respective terms.

The opinions expressed above are subject to the following additional exceptions, qualifications, limitations and assumptions:

A. We render no opinion herein as to matters involving the laws of any jurisdiction other than the State of New York and, to the extent relevant for our opinions herein, the laws of the States of California and Texas and the Delaware General Corporation Law and the Delaware Limited Liability Company Act. This opinion is limited to the effect of the current state of the laws of the States of New York, California and Texas and the Delaware General Corporation Law and the Delaware Limited Liability Company Act and the facts as they currently exist. We assume no obligation to revise or supplement this opinion in the event of future changes in such laws or the interpretations thereof or such facts.

B. The opinions above are each subject to (i) the effect of any bankruptcy, insolvency, reorganization, moratorium, arrangement or similar laws affecting the rights and remedies of creditors generally, including without limitation the effect of statutory or other laws regarding fraudulent transfers or preferential transfers, (ii) general principles of equity, including without limitation concepts of materiality, reasonableness, good faith and fair dealing and the possible unavailability of specific performance, injunctive relief or other


D.R. Horton, Inc.

October 2, 2020

Page 3

 

equitable remedies regardless of whether enforceability is considered in a proceeding in equity or at law and (iii) the provisions of: (1) Article Eight of the Certificate of Incorporation of CH Investments of Texas, Inc.; (2) Article Eight of the Certificate of Incorporation of CHTEX of Texas, Inc.; (3) Paragraph Eight of the Certificate of Incorporation of D.R. Horton, Inc. -Chicago (excluding the first three sentences thereof); and (4) Article Ten of the Certificate of Incorporation of Western Pacific Housing, Inc.

C. We express no opinion regarding the effectiveness of (i) any waiver of stay, extension or usury laws or of unknown future rights, (ii) provisions relating to indemnification, exculpation or contribution, to the extent such provisions may be held unenforceable as contrary to public policy or federal or state securities laws, or (iii) any purported fraudulent transfer “savings” clause.

We consent to the filing of this opinion as an exhibit to the Registration Statement, and we further consent to the use of our name under the caption “Legal Matters” in the Registration Statement and the Prospectus Supplement. In giving these consents, we do not thereby admit that we are within the category of persons whose consent is required under Section 7 of the Securities Act or the rules and regulations of the Commission promulgated thereunder.

Very truly yours,

/s/ Gibson, Dunn & Crutcher LLP


ANNEX A

Guarantors

 

Name

  

Form of Entity

  

Jurisdiction of

    Formation    

  

 Specified 

Guarantor

C. Richard Dobson Builders, Inc.    Corporation    Virginia    No
CH Investments of Texas, Inc. (f/k/a CH Investments of Texas II, Inc.)    Corporation    Delaware    Yes
CHI Construction Company    Corporation    Arizona    No
CHTEX of Texas, Inc.    Corporation    Delaware    Yes
Continental Homes, Inc.    Corporation    Delaware    Yes
Continental Homes of Texas, L.P.    Limited Partnership    Texas    Yes
Continental Residential, Inc. (f/k/a L&W Investments, Inc.)    Corporation    California    Yes
D.R. Horton - CHAustin, LLC (f/k/a DRH Regrem XXXII, LLC)    Limited Liability Company    Delaware    Yes
D.R. Horton - Colorado, LLC (f/k/a DRH Regrem XXXV, LLC)    Limited Liability Company    Delaware    Yes
D.R. Horton - Corpus Christi, LLC (f/k/a DRH Regrem XLII, LLC)    Limited Liability Company    Delaware    Yes
D.R. Horton - Crown, LLC (f/k/a DRH Regrem XXVII, LLC)    Limited Liability Company    Delaware    Yes


Name

  

Form of Entity

  

Jurisdiction of

    Formation    

  

 Specified 

Guarantor

D.R. Horton - Emerald, Ltd. (f/k/a DRH Regrem VI, LP)    Limited Partnership    Texas    Yes
D.R. Horton - Georgia, LLC (f/k/a DRH Regrem XXX, LLC)    Limited Liability Company    Delaware    Yes
D.R. Horton - Highland, LLC (f/k/a DRH Regrem XXXIX, LLC)    Limited Liability Company    Delaware    Yes
D.R. Horton - Indiana, LLC (f/k/a DRH Regrem XXXVI, LLC)    Limited Liability Company    Delaware    Yes
D.R. Horton - Iowa, LLC (f/k/a DRH Regrem XXXVIII, LLC)    Limited Liability Company    Delaware    Yes
D.R. Horton - Permian, LLC (f/k/a DRH Regrem XXXIII, LLC)    Limited Liability Company    Delaware    Yes
D.R. Horton - Regent, LLC (f/k/a DRH Regrem XXVI, LLC)    Limited Liability Company    Delaware    Yes
D.R. Horton - Terramor, LLC (f/k/a DRH Regrem XL, LLC)    Limited Liability Company    Delaware    Yes
D.R. Horton - Texas, Ltd.    Limited Partnership    Texas    Yes


Name

  

Form of Entity

  

Jurisdiction of

    Formation    

  

 Specified 

Guarantor

D.R. Horton - WPH, LLC (f/k/a (i) D.R. Horton - Atlanta, LLC and (ii) DRH Regrem XXIX, LLC)    Limited Liability Company    Delaware    Yes
D.R. Horton - Wyoming, LLC (f/k/a DRH Regrem XLIII, LLC)    Limited Liability Company    Delaware    Yes
D.R. Horton, Inc. - Birmingham    Corporation    Alabama    No
D.R. Horton, Inc. - Chicago    Corporation    Delaware    Yes
D.R. Horton, Inc. - Dietz-Crane (f/k/a DRH Regrem I, Inc.)    Corporation    Delaware    Yes
D.R. Horton, Inc. - Greensboro    Corporation    Delaware    Yes
D.R. Horton, Inc. - Gulf Coast (f/k/a DRH Regrem V, Inc.)    Corporation    Delaware    Yes
D.R. Horton, Inc. - Huntsville (f/k/a DRH Regrem XIII, Inc.)    Corporation    Delaware    Yes
D.R. Horton, Inc. - Jacksonville (f/k/a D.R. Horton, Inc. - San Diego)    Corporation    Delaware    Yes
D.R. Horton, Inc. - Louisville (f/k/a D.R. Horton, Inc. - Albuquerque)    Corporation    Delaware    Yes


Name

  

Form of Entity

  

Jurisdiction of

    Formation    

  

 Specified 

Guarantor

D.R. Horton, Inc. - Midwest (f/k/a (i) DRH Cambridge Homes, Inc. and (ii) D.R. Horton Sacramento Management Company, Inc.)    Corporation    California    Yes
D.R. Horton, Inc. - Minnesota    Corporation    Delaware    Yes
D.R. Horton, Inc. - New Jersey    Corporation    Delaware    Yes
D.R. Horton, Inc. - Portland    Corporation    Delaware    Yes
D.R. Horton, Inc. - Torrey    Corporation    Delaware    Yes
D.R. Horton BAY, Inc. (f/k/a (i) D.R. Horton OCI, Inc., (ii) D.R. Horton Orange County, Inc. and (iii) DRH Regrem IX, Inc.)    Corporation    Delaware    Yes
D.R. Horton CA2, Inc. (f/k/a D.R. Horton, Inc. - Sacramento)    Corporation    California    Yes
D.R. Horton CA3, Inc. (f/k/a (i) DRH Regrem IV, Inc. and (ii) D.R. Horton, Inc. - Fresno)    Corporation    Delaware    Yes
D.R. Horton CA4, LLC (f/k/a DRH Regrem XXXI, LLC)    Limited Liability Company    Delaware    Yes


Name

  

Form of Entity

  

Jurisdiction of

    Formation    

  

 Specified 

Guarantor

D.R. Horton Cruces Construction, Inc. (f/k/a DRH Regrem XI, Inc.)    Corporation    Delaware    Yes
D.R. Horton Hawaii LLC (f/k/a D.R. Horton - Schuler Homes, LLC)    Limited Liability Company    Delaware    Yes
D.R. Horton LA North, Inc. (f/k/a DRH Regrem X, Inc.)    Corporation    Delaware    Yes
D.R. Horton Los Angeles Holding Company, Inc.    Corporation    California    Yes
D. R. Horton Management Company, Ltd. (f/k/a Meadows Management Company, Ltd.)    Limited Partnership    Texas    Yes
D.R. Horton Materials, Inc. (f/k/a DRH Regrem III, Inc.)    Corporation    Delaware    Yes
D.R. Horton Serenity Construction, LLC (f/k/a DRH Regrem VIII, LLC)    Limited Liability Company    Delaware    Yes
D.R. Horton VEN, Inc. (f/k/a (i) D.R. Horton LAV, Inc. and (ii) D.R. Horton San Diego Holding Company, Inc.)    Corporation    California    Yes


Name

  

Form of Entity

  

Jurisdiction of

    Formation    

  

 Specified 

Guarantor

DRH - HWY 114, LLC (f/k/a DRH Regrem XLI, LLC)    Limited Liability Company    Delaware    Yes
DRH Cambridge Homes, LLC    Limited Liability Company    Delaware    Yes
DRH Construction, Inc.    Corporation    Delaware    Yes
DRH Regrem VII, LP    Limited Partnership    Texas    Yes
DRH Regrem XII, LP    Limited Partnership    Texas    Yes
DRH Regrem XIV, Inc.    Corporation    Delaware    Yes
DRH Regrem XV, Inc.    Corporation    Delaware    Yes
DRH Regrem XVI, Inc.    Corporation    Delaware    Yes
DRH Regrem XVII, Inc.    Corporation    Delaware    Yes
DRH Regrem XVIII, Inc.    Corporation    Delaware    Yes
DRH Regrem XIX, Inc.    Corporation    Delaware    Yes
DRH Regrem XX, Inc.    Corporation    Delaware    Yes
DRH Regrem XXI, Inc.    Corporation    Delaware    Yes
DRH Regrem XXII, Inc.    Corporation    Delaware    Yes
DRH Regrem XXIII, Inc.    Corporation    Delaware    Yes
DRH Regrem XXIV, Inc.    Corporation    Delaware    Yes


Name

  

Form of Entity

  

Jurisdiction of

    Formation    

  

 Specified 

Guarantor

DRH Regrem XXV, Inc. (f/k/a (i) D.R. Horton VEN, Inc., (ii) D.R. Horton, Inc. - Los Angeles and (iii) D.R. Horton, Inc. -Chicago)    Corporation    Delaware    Yes
DRH Regrem XLIV, LLC    Limited Liability Company    Delaware    Yes
DRH Regrem XLV, LLC    Limited Liability Company    Delaware    Yes
DRH Regrem XLVI, LLC    Limited Liability Company    Delaware    Yes
DRH Regrem XLVII, LLC    Limited Liability Company    Delaware    Yes
DRH Regrem XLVIII, LLC    Limited Liability Company    Delaware    Yes
DRH Regrem XLIX, LLC    Limited Liability Company    Delaware    Yes
DRH Regrem L, LLC    Limited Liability Company    Delaware    Yes
DRH Regrem LI, LLC    Limited Liability Company    Delaware    Yes
DRH Regrem LII, LLC    Limited Liability Company    Delaware    Yes
DRH Regrem LIII, LLC    Limited Liability Company    Delaware    Yes
DRH Regrem LIV, LLC    Limited Liability Company    Delaware    Yes
DRH Regrem LV, LLC    Limited Liability Company    Delaware    Yes
DRH Southwest Construction, Inc. (f/k/a DRH Land Company, Inc.)    Corporation    California    Yes


Name

  

Form of Entity

  

Jurisdiction of

    Formation    

  

 Specified 

Guarantor

DRH Tucson Construction, Inc. (f/k/a DRH - California, Inc.)    Corporation    Delaware    Yes
HPH Homebuilders 2000 L.P.    Limited Partnership    California    Yes
KDB Homes, Inc.    Corporation    Delaware    Yes
Lexington Homes - DRH, LLC (f/k/a DRH Regrem XXXIV, LLC)    Limited Liability Company    Delaware    Yes
Meadows I, Ltd.    Corporation    Delaware    Yes
Meadows II, Ltd.    Corporation    Delaware    Yes
Meadows VIII, Ltd.    Corporation    Delaware    Yes
Meadows IX, Inc.    Corporation    New Jersey    No
Meadows X, Inc.    Corporation    New Jersey    No
Melody Homes, Inc.    Corporation    Delaware    Yes
Pacific Ridge - DRH, LLC (f/k/a (i) D.R. Horton - Seattle North, LLC and (ii) DRH Regrem XXVIII, LLC)    Limited Liability Company    Delaware    Yes
Schuler Homes of Arizona LLC    Limited Liability Company    Delaware    Yes
Schuler Homes of California, Inc.    Corporation    California    Yes
Schuler Homes of Oregon, Inc.    Corporation    Oregon    No
Schuler Homes of Washington, Inc.    Corporation    Washington    No
SGS Communities at Grande Quay L.L.C.    Limited Liability Company    New Jersey    No


Name

  

Form of Entity

  

Jurisdiction of

    Formation    

  

 Specified 

Guarantor

SHA Construction LLC    Limited Liability Company    Delaware    Yes
SHLR of California, Inc.    Corporation    California    Yes
SHLR of Nevada, Inc.    Corporation    Nevada    No
SHLR of Washington, Inc.    Corporation    Washington    No
SRHI LLC    Limited Liability Company    Delaware    Yes
SSHI LLC    Limited Liability Company    Delaware    Yes
Vertical Construction Corporation (f/k/a Lokelani Construction Corporation)    Corporation    Delaware    Yes
Walker Drive, LLC (f/k/a DRH Regrem XXXVII, LLC)    Limited Liability Company    Delaware    Yes
Western Pacific Housing-Antigua, LLC (f/k/a Western Pacific Housing - Eastlake, LLC)    Limited Liability Company    Delaware    Yes
Western Pacific Housing-Broadway, LLC    Limited Liability Company    Delaware    Yes
Western Pacific Housing-Canyon Park, LLC    Limited Liability Company    Delaware    Yes
Western Pacific Housing-Carrillo, LLC    Limited Liability Company    Delaware    Yes


Name

  

Form of Entity

  

Jurisdiction of

    Formation    

  

 Specified 

Guarantor

Western Pacific Housing-Communications Hill, LLC    Limited Liability Company    Delaware    Yes
Western Pacific Housing-Copper Canyon, LLC (f/k/a Agoura II, LLC)    Limited Liability Company    Delaware    Yes
Western Pacific Housing-Creekside, LLC    Limited Liability Company    Delaware    Yes
Western Pacific Housing-Lomas Verdes, LLC    Limited Liability Company    Delaware    Yes
Western Pacific Housing-McGonigle Canyon, LLC (f/k/a Western Pacific Housing-Carlsbad II, LLC)    Limited Liability Company    Delaware    Yes
Western Pacific Housing - Mountaingate, L.P.    Limited Partnership    California    Yes
Western Pacific Housing-Norco Estates, LLC    Limited Liability Company    Delaware    Yes
Western Pacific Housing-Pacific Park II, LLC    Limited Liability Company    Delaware    Yes
Western Pacific Housing-Park Avenue East, LLC    Limited Liability Company    Delaware    Yes
Western Pacific Housing-Park Avenue West, LLC    Limited Liability Company    Delaware    Yes
Western Pacific Housing-Playa Vista, LLC    Limited Liability Company    Delaware    Yes


Name

  

Form of Entity

  

Jurisdiction of

    Formation    

  

 Specified 

Guarantor

Western Pacific Housing-River Ridge, LLC    Limited Liability Company    Delaware    Yes
Western Pacific Housing-Terra Bay Duets, LLC    Limited Liability Company    Delaware    Yes
Western Pacific Housing-Torrey Meadows, LLC    Limited Liability Company    Delaware    Yes
Western Pacific Housing-Torrey Village Center, LLC    Limited Liability Company    Delaware    Yes
Western Pacific Housing-Windemere, LLC (f/k/a Western Pacific Housing-Glacier, LLC)    Limited Liability Company    Delaware    Yes
Western Pacific Housing, Inc. (f/k/a Schuler Homes Holdco, Inc.)    Corporation    Delaware    Yes
Western Pacific Housing Management, Inc. (f/k/a Western Pacific Housing, Inc. (CA))    Corporation    California    Yes
WPH-Camino Ruiz, LLC    Limited Liability Company    Delaware    Yes