CORRECTED - D.R. Horton credit line reduced after 5th change

Tue Jul 1, 2008 8:49pm BST

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(Corrects spelling of analyst's first name to Vicki from Vicky)

NEW YORK, July 1 (Reuters) - D.R. Horton Inc (DHI.N), a Texas-based builder, said on Tuesday its credit line with Wachovia Corp WB.N has been reduced to $1.65 billion after renegotiating the facility for the fifth time since 2005.

The latest change, effective June 26, is the second this year. D.R. Horton entered into the unsecured revolving credit agreement with Wachovia in December 2005, according to a filing with the U.S. Securities and Exchange Commission.

The Fort Worth-based builder had to renegotiate yet again because it couldn't meet its obligations under the previous facility of $2.25 billion, said analyst Vicki Bryan of research firm Gimme Credit.

"What people might not be realizing is that banks are really stepping back as far as D.R. Horton's access to credit," Bryan said.

Banks have been tightening credit to builders to reduce their exposure to the U.S. housing slump which is deemed by many as the worst since the Great Depression.

D.R. Horton's shares fell 5 cents, or 0.46 percent, to $10.90 at mid-afternoon on the New York Stock Exchange.

(Reporting by Helen Chernikoff, editing by Richard Chang)

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