By Paul A. Harris
St. Louis, Jan. 13 - KB Home sold $250 million of 10-year senior notes (Ba1/BB+) at 99.474 with a 5¾% coupon to yield 5.82%, or 175 basis points over Treasuries, a syndicate source said.
The notes, which mature Feb. 1, 2014, feature a make-whole call at Treasuries plus 30 basis points.
Price talk was in the area of 5 7/8%, or a 175 to 180 basis point spread to Treasuries.
Banc of America Securities ran the books on the Rule 144A issue, which was jointly transacted off of the high-yield and investment-grade desks. Banc One Capital Markets, Credit Lyonnais, KeyBank Capital Markets, Suntrust Robinson Humphrey and Wachovia Securities were co-managers.
The Los Angeles-based homebuilder plans to use proceeds to repay a portion of the company's revolver and for general corporate purposes.
| Issuer: | KB Home
|
| Amount: | $250 million
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| Maturity: | Feb. 1, 2014
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| Security description: | Senior notes
|
| Bookrunner: | Banc of America Securities
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| Co-managers: | Banc One Capital Markets, Credit Lyonnais, KeyBank Capital Markets, Suntrust Robinson Humphrey, Wachovia Securities
|
| Coupon: | 5¾%
|
| Price: | 99.474
|
| Yield: | 5.82%
|
| Spread: | 175 basis points
|
| Call features: | Make-whole call at T+30
|
| Settlement date: | Jan. 28
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BB+
|
| Price talk: | 5 7/8% area (175-180 basis point spread to Treasuries)
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