KB Home (NYSE: KBH), one of the nation’s largest and most recognized homebuilders, today announced that it has upsized and priced an offering of $450 million in aggregate principal amount of senior notes due 2021 (the “2021 Senior Notes”). The size of the offering was increased to $450 million from the previously announced $350 million. The 2021 Senior Notes will bear interest at a rate of 7.0% per annum and will be issued at a public offering price of 100% of their face amount. The Company expects to close the 2021 Senior Notes offering on October 29, 2013, subject to the satisfaction of customary closing conditions. Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are acting as joint book-running managers for the notes offering.
KB Home intends to apply a portion of the net proceeds from the senior notes offering toward (i) the payment of the purchase price of notes validly tendered and accepted for purchase in its previously announced cash tender offers for any and all of its outstanding 5¾% Senior Notes due 2014 (the “2014 Notes”), any and all of its outstanding 5⅞% Senior Notes due 2015 (the “5⅞% 2015 Notes”, and together with the 2014 Notes, the “Redeemable Notes”), and up to $37.0 million in aggregate principal amount of its outstanding 6¼% Senior Notes due 2015, including the payment of unpaid interest and any applicable early tender premiums offered for each series of notes pursuant to the terms of the tender offers and (ii) at KB Home’s option, the redemption of any Redeemable Notes not purchased in the tender offers. The remaining net proceeds will be used for general corporate purposes.
The senior notes offering is being made pursuant to an effective shelf registration statement that KB Home has on file with the Securities and Exchange Commission (“SEC”). A copy of the prospectus supplement and accompanying prospectus describing the offering, when available, may be obtained by visiting EDGAR on the SEC’s website at www.sec.gov or by contacting Credit Suisse at the following address: Attention: Prospectus Department, One Madison Avenue, New York, New York 10010, e-mail: firstname.lastname@example.org or toll free at (800) 221-1037.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of such securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The senior notes offering is being made only by means of the prospectus supplement and accompanying prospectus.