THE ANGEL–(BUSINESS WIRE)–KB Home (NYSE: KBH) announced today that it has made an offering of $350.0 million in aggregate principal of its 7.25% Senior Unsecured Notes due 2030. The offering is made pursuant to an existing shelf registration statement previously filed by KB Home with the Securities and Exchange Commission (“SEC”).
The senior notes due 2030 will bear interest at a rate of 7.25% per annum and will be issued at a public offering price of 100.00%. The Senior Notes will be guaranteed on an unsecured basis by KB Home’s subsidiaries, which have guaranteed the outstanding KB Home Senior Notes.
KB Home estimates total net proceeds from the Offering to be approximately $345.5 million after deducting the underwriting discount and estimated offering costs payable by KB Home. KB Home intends to use the net proceeds of the Offering, together with available cash, as needed to redeem its outstanding 7.5% Senior Notes due 2022 by redemption in accordance with optional redemption terms specified for such Notes, purchase or redemption at maturity. KB Home intends to use any remaining net proceeds from the offering of the senior debentures for general corporate purposes.
Closing of the offering of the Senior Notes is expected to occur on June 22, 2022, subject to the satisfaction of customary closing conditions. Citigroup Global Markets Inc., BofA Securities, Inc., BNP Paribas Securities Corp., Fifth Third Securities, Inc., JP Morgan Securities LLC and Wells Fargo Securities, LLC are acting as bookkeepers for the offering.
A copy of the prospectus supplement and the accompanying prospectus describing the offering, if available, may be obtained from EDGAR at the SEC’s website at www.sec.gov or from Citigroup at the following address: c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 email: [email protected] or toll free at 1-800-831-9146 or BofA Securities at the following address: BofA Securities, NC1-004-03-43, 200 North College Street , 3rd floor, Charlotte, NC 28255-0001, Attn: Prospectus Department, email: [email protected], or BNP PARIBAS at the following address: Attn: Syndicate Desk, 787 Seventh Avenue, New York, NY 10019 , Email : [email protected] or toll free 1-800-854-5674 or Fifth Third Securities, 38 Fountain Square Plaza, Cincinnati, Ohio 45263 toll free 1-866-531 – 5353, or JP Morgan Securities LLC at the following address: c/o Broadridge Financial Soluti ons, 1155 Long Island Avenue, Edgewood, NY 1 1717 or by calling (866)-803-9204 or Wells Fargo Securities at the following address: Attn: WFS Customer Service, 608 2nd Avenue South, Suite 1000, Minneapolis, MN 55402, Email: [email protected] or toll free at 1-800-645-3751.
This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction where such offer, solicitation or sale is pending registration or qualification among unlawful would be the securities laws of such jurisdiction. Senior Notes are being offered only by means of the prospectus supplement and accompanying prospectus. This press release does not constitute a redemption notice in respect of KB Home’s 7.5% Senior Notes due 2022.
About KB Home
KB Home is one of the largest and most well-known home builders in the United States, having built over 655,000 quality homes in our 65-year history. Today KB Home operates in 47 markets from coast to coast. What sets KB Home apart is the exceptional personalization we offer our home buyers – from those buying their first home to experienced buyers – enabling them to design their home at a price that fits their budget is equivalent to. As a leader in energy efficient home construction, KB Home was the first home builder to make every home it built ENERGY STAR® qualified, a standard of energy efficiency achieved by less than 10% of new homes in America and has more ENERGY STAR -Certified built homes than any other builder. An energy efficient KB home helps reduce running costs and is healthier, more comfortable and more environmentally friendly than new homes without certification. We build strong, personal relationships with our clients so they have a true partner in the home buying process. As a result, we have the distinction of being the #1 national homebuilder in customer rankings in third-party buyer satisfaction surveys.
Forward-Looking and Cautionary Statements
Certain matters discussed in this press release, including any statements that are forward-looking in nature or address future market and economic conditions, business and prospects, our future financial and operational performance, or our future actions and their expected results, are “forward-looking statements”. . as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations and projections of future events and are not guarantees of future performance. We have no specific policy or intention to update or revise any forward-looking statements. Actual events and results could differ materially from those expressed or projected in the forward-looking statements due to a number of factors. The most important risk factors that could cause our actual performance and future events and actions to differ materially from such forward-looking statements include, among others, the following: general economic, employment and business conditions; population growth, household formation and demographic development; capital, credit and financial market conditions; our ability to access outside sources of financing and raise capital through the issuance of common stock, debt or other securities and/or project financing on favorable terms; conducting security repurchases as approved by our Board of Directors; material and trade costs and availability, including building materials, particularly lumber, and equipment; consumer and producer price inflation; changes in interest rates; our debt level, including our debt to capital ratio, and our ability to adjust our debt level and maturity schedule; our compliance with the terms of our revolving credit facility; volatility in the market price of our common stock; Home selling prices, including the selling prices of our homes, are increasing faster than consumer incomes; weak or declining consumer confidence, either generally or specifically in relation to home buying; competition from other sellers of new and used homes; weather events, major natural disasters and other climatic and environmental factors; any failure by legislators to agree on a budget or budgetary legislation to fund the federal government’s operations and the responses of financial markets and corporations to such failure; Policies, policies, programs, and regulations of government that target or affect the housing market (including the tax benefits associated with buying and owning a home and the standards, fees, and size limits required for purchasing or insuring mortgage loans by state subsidized companies apply). and government agencies), the housing industry or construction activities; changes in existing tax laws or enacted corporate tax rates, including those resulting from government guidance and interpretations issued in relation thereto; changes in US trade policy, including the imposition of tariffs and tariffs on housing materials and products and related trade disputes with and retaliation from other countries; Disruptions in global and regional trade flows, economic activity and supply chains due to the military conflict in Ukraine, including those resulting from sweeping sanctions that the US and other countries have imposed or continue to impose on Russian economic sectors, financial organizations, individuals and Russia will commodities, the effects of which may, among other things, increase our operating costs, exacerbate building material and equipment shortages and/or reduce our revenues and earnings; the adoption of new or amended accounting standards and related guidance and/or interpretations; the availability and cost of land in desirable areas and our ability to timely develop acquired land parcels and open new home communities; our experience with warranty claims relating to previously delivered homes and actual warranty costs incurred; Costs and/or fees arising out of regulatory compliance requirements or any court, arbitration or regulatory proceeding, investigation, claim or settlement, including adverse outcomes in such matters, resulting in actual or potential monetary damages, penalties, fines or others result in direct or indirect payments, injunctions, consent writs, or other restrictions or adjustments, voluntary or involuntary, to our business operations or practices that exceed our current expectations and/or provisions; our ability to use/realize the deferred tax assets we generate; our ability to successfully implement our current and planned strategies and initiatives related to our product, geographic and market positioning, to gain market share and scale in our served markets and to enter new markets; our concentration of operations and investments in markets in California; consumer interest in our new communities and products, particularly from first-time buyers and higher-income consumers; our ability to generate orders and convert our backlog into home delivery and revenue, particularly in key markets in California; our ability to successfully implement our business strategies and achieve all related financial and operational targets and objectives, including those discussed in this press release or other public filings, presentations or disclosures; volatility of income tax expense related to stock-based compensation; the ability of our homebuyers to obtain residential mortgage loans and mortgage banking services; the performance of mortgage lenders to our homebuyers; the performance of KBHS Home Loans LLC, our mortgage lender joint venture; information technology outages and data security breaches; an epidemic or pandemic (such as the outbreak and global spread of COVID-19) and the control response measures that international (including China), federal, state and local governments, agencies, law enforcement and/or public health agencies are taking to address it which (as with COVID-19) may create or exacerbate one or more of the above and/or other risks and significantly disrupt or prevent us from conducting our business in the normal course for an extended period of time; and other events beyond our control. For more information about these and other risks and uncertainties affecting our business, please see our periodic reports and other filings with the Securities and Exchange Commission.
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