KB Home driving by with $350 million eight-year notes; initial talk high-6% area including discount

By Paul A. Harris

Portland, Ore., June 7 – KB Home plans to price a $350 million public offering of eight-year senior notes (Ba2/BB) in a Tuesday drive-by trailing a conference call with investors, according to market sources.

Initial guidance is in the high-6% area, including an original issue discount, a sellside source said.

Left bookrunner Citigroup Global Markets Inc. will bill and deliver. BofA Securities Inc., BNP Paribas Securities Corp., Fifth Third Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.

Citizens Capital Markets Inc., Regions Securities LLC, BMO Capital Markets Corp., MUFG, Zions First National Bank, CIBC World Markets Corp. and Texas Capital are the co-managers.

The notes become callable after three years at par plus 50% of the coupon.

Los Angeles-based homebuilder plans to use the proceeds to refinance its 7½% senior notes due 2022.

© 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.