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KB Home increases revolver to $1.09 billion, extends maturity to 2027
By Marisa Wong
Los Angeles, Feb. 24 – KB Home entered into a fourth amended and restated revolving loan agreement on Feb. 18 to increase the commitment under its unsecured revolving credit facility to $1.09 billion from $800 million and to extend the maturity to Feb. 18, 2027 from Oct. 7, 2023, according to an 8-K filing with the Securities and Exchange Commission.
In some cases, the aggregate maximum principal amount of available loans under the credit facility may be increased to up to $1.29 billion.
The credit facility includes a $250 million sublimit for letters of credit.
The fourth amended credit facility replaces the company’s prior third amended and restated revolving credit facility dated Oct. 7, 2019.
Borrowings bear interest at adjusted term SOFR plus a spread ranging from 125 basis points to 175 bps, depending on the company’s leverage ratio.
Based on the company’s leverage ratio at closing, the commitment fee on the unused portion of the credit facility is 15 bps.
As before, the credit facility contains financial covenants relating to tangible net worth, leverage, liquidity or interest coverage and borrowing base.
At closing, the company had about $475 million of loans and $8.6 million of letters of credit outstanding, leaving $606.4 million available, with up to $241.4 million of that amount available for the issuance of letters of credit.
Citibank, NA is administrative agent and a lender.
Bank of America, NA, Bank of the West, Citizens Bank, NA, Fifth Third Bank, NA, JPMorgan Chase Bank, NA and Wells Fargo Bank, NA are syndication agents and lenders. Citibank, BofA Securities, Inc., Bank of the West, Citizens Bank, Fifth Third Bank, JPMorgan Chase and Wells Fargo Securities, LLC are joint lead arrangers and joint bookrunners.
KB Home is a Los Angeles-based homebuilder.
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