KB Home upsizes offering of senior notes due 2022 to US$350M from US$250M, expects to close offering on July 31
July 26, 2012
– KB Home (NYSE: KBH), one of the nation’s premier homebuilders, today announced that it has upsized and priced an offering of $350 million in aggregate principal amount of senior notes due 2022 (the “2022 Senior Notes”). The size of the offering was increased to $350 million from the previously announced $250 million. The notes will bear interest at 7.5% per annum and be issued at a public offering price of 100% of their face amount. The Company expects to close the 2022 Senior Notes offering on July 31, 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 outstanding 5¾% Senior Notes due 2014 (the “2014 Notes”), and for its outstanding 5⅞% Senior Notes due 2015 and 6¼% Senior Notes due 2015 (the “2015 Notes”), and to use the net proceeds from the offering of the 2022 Senior Notes to purchase notes validly tendered in the applicable tender offers and accepted for purchase. Any remaining net proceeds from the sale of the 2022 Senior Notes will be used for general corporate purposes.
Citigroup, Credit Suisse and Deutsche Bank Securities are acting as joint book-running managers for the 2022 Senior Notes offering. A shelf registration statement covering the issuance of the 2022 Senior Notes has been filed with the Securities and Exchange Commission (“SEC”) and is effective. Copies of the prospectus supplement and accompanying prospectus describing the offering may be obtained by visiting EDGAR on the SEC’s website at www.sec.gov or by contacting Citigroup at the following address: Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, New York 11220 or by telephone at 1-877-858-5407 or by e-mail at email@example.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any 2022 Senior Notes nor shall there be any sale of 2022 Senior Notes 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 2022 Senior Notes offering is being made only by means of the prospectus supplement and accompanying prospectus.
About KB Home
KB Home is one of the largest and most recognized homebuilding companies in the United States. Since its founding in 1957, the Company has built more than half a million quality homes. KB Home's signature Built to Order™ approach lets each buyer customize their new home from lot location to floor plan and design features. In addition to meeting strict ENERGY STAR® guidelines, all KB homes are highly energy efficient to help lower monthly utility costs for homeowners, which the Company demonstrates with its proprietary KB Home Energy Performance Guide® (EPG®). A leader in utilizing state-of-the-art sustainable building practices, KB Home was named the #1 Green Homebuilder in the most recent study by Calvert Investments and the #1 Homebuilder on FORTUNE magazine’s 2011 World's Most Admired Companies list. Los Angeles-based KB Home was the first homebuilder listed on the New York Stock Exchange, and trades under the ticker symbol “KBH.” For more information about KB Home's new home communities, call 888-KB-HOMES or visit www.kbhome.com.
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