KB Home tenders for up to $250 million of three series of notes

By Jennifer Chiou

New York, Jan. 20 - KB Home announced the start of a cash tender offer for up to $250 million overall of its $250 million of 5¾% senior notes due 2014, $300 million of 5 7/8% senior notes due 2015 and $450 million of 6¼% senior notes due 2015.

The notes are listed in order of acceptance priority level.

For each $1,000 principal amount, KB Home is offering $1,010 for the 5¾% notes and par for the other two series. The payouts include an early tender premium of $30.00 for those who tender by the early deadline of 5 p.m. ET on Jan. 31.

The Los Angeles-based homebuilder will also pay accrued interest.

The tender offer is set to expire at 11:59 p.m. ET on Feb. 15.

The company said it plans to offer new debt securities, the completion of which is one of the conditions of the tender.

Citigroup Global Markets, Inc. (800 558-3745 or call collect 212 723-6106) and Credit Suisse Securities (USA) LLC (800 820-1653 or call collect 212 538-2147) are the dealer managers for the tender.

The information agent is Global Bondholder Services Corp. (866 540-1500 or call collect 212 430-3774).

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