Market Overview

From Earlier: KB Home Announces Upsizing and Pricing of Senior Notes Due 2020


KB Home (NYSE: KBH) yesterday announced that it has upsized and priced an offering of $350 million in aggregate principal amount of senior notes due 2020. The size of the offering was increased from the previously announced $250 million.

The notes will bear interest at 8.0% per annum and be issued at a public offering price of 98.523% of their face amount. The Company expects to close the 2020 Senior Note offering on February 7, 2012, subject to the satisfaction of customary closing conditions.

KB Home also intends to upsize and amend certain terms of its previously announced cash tender offers for its 5¾% Senior Notes due 2014 and for its 5⅞% Senior Notes due 2015 and 6¼% Senior Notes due 2015, and to use the net proceeds from the offering of the 2020 Senior Notes to purchase notes validly tendered in the applicable tender offers and accepted for purchase. After payment for such validly tendered and accepted notes, KB Home would use any remaining net proceeds from the sale of the 2020 Senior Notes for general corporate purposes.

Posted-In: News Offerings


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