KB Home launches consent solicitation for $1.65 billion of senior notes

By Angela McDaniels

Seattle, Oct. 25 - KB Home is soliciting consents from the holders of $1.65 billion of its senior notes to approve a proposed amendment to the indenture governing the notes, according to a company news release.

The amendment would suspend until Feb. 23 any event of default triggered by the company's failure to file its 10-Q report for the quarter ended Aug. 31 on time.

Noteholders who consent will receive a cash consent fee of $7.50 per $1,000 principal amount of notes held.

The consent solicitation will expire at 5 p.m. ET on Nov. 7.

KB Home said it has not yet filed its 10-Q with the Securities and Exchange Commission because it has not completed an internal review of its historical stock option grants and related accounting. The company intends to file the 10-Q report on or before Dec. 24, which would be in time to cure any default that might be declared under the indenture as a result of the delayed filing.

Global Bondholder Services Corp. (866 470-3800 or 212 430-3774) is information agent and tabulation agent for the consent solicitation. Banc of America Securities LLC (888 292-0070 or 704 388-4813) and Citigroup Corporate and Investment Banking (800 558-3745) are joint solicitation agents.

KB Home is a Los Angeles-based builder of single-family homes.

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