KB Home cancels $200 million revolver, will transfer letters of credit

By Angela McDaniels

Tacoma, Wash., March 30 - KB Home has terminated its $200 million revolving credit facility effective Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

There are no borrowings and approximately $106 million letters of credit outstanding under the facility.

Once the termination becomes effective, the letters of credit will be transferred to a cash-collateralized letter-of-credit facility that the company has established with Bank of America, NA.

The company said it is terminating the revolver and entering into the new facility as a cost-savings measure. It may choose to enter into similar letter-of-credit facilities with other financial institutions.

As previously reported, the company downsized the revolver to $200 million from $650 million in December.

Bank of America is the administrative agent.

KB Home is a Los Angeles-based homebuilder.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.