S&P rates KB Home notes BB-

S&P said it assigned a BB- rating and 3 recovery rating to KB Home's proposed $300 million senior unsecured notes due in 2027.

The 3 recovery rating indicates 50% to 70% expected default recovery.

This proposed new issuance will be used to repay $400 million senior unsecured notes due in May 2019, S&P said.

The company also proposed $100 million in borrowings that it plans to add on to its existing senior notes due in 2023.

This supplemental tranche and cash on hand will be used to pay off its $230 million in convertible notes that matured Feb. 1, the agency explained.

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