KB Home Prices $250 Mln Senior Notes Due 2023 - Quick Facts

(RTTNews) - Home builder KB Home (KBH) said it has priced an offering of $250.0 million in aggregate principal amount of its senior notes due 2023 in its previously announced senior notes offering.

The senior notes will bear interest at a rate of 7.625 percent per annum and will be issued at a public offering price of 100.0 percent. The notes will be guaranteed on an unsecured senior basis by certain of KB Home's subsidiaries that have guaranteed the outstanding senior notes.

KB Home estimates the aggregate net proceeds from the senior notes offering to be about $246.7 million, after deducting the underwriting discount and estimated offering expenses.

The firm intends to use the net proceeds from the offering to retire its 6 1/4 percent Senior Notes due 2015 and/or for general corporate purposes. The closing of the notes offering is expected to occur on February 17.

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 offering.