KB Home again amends revolver, lowering limit to $800 million

By Susanna Moon

Chicago, Aug. 29 - KB Home amended its revolving credit facility, reducing the size to $800 million from $1.3 billion, according to an 8-K filed with the Securities and Exchange Commission.

KB Home entered into the fifth amendment to the revolver on Aug. 28.

The amendment also provides the following:

• Permanently reduces the commitment to (a) $650 million if consolidated tangible net worth is between $500 million and $800 million, or (b) $500 million if consolidated tangible net worth is less than or equal to $500 million;

• Reduces the sublimit for swing line loans to $60 million from $100 million;

• Reduces the sublimit for letters of credit to $600 million from $1.0 billion;

• Reduces the amount of unrestricted cash applied to the calculation of the borrowing base by subtracting the amount of outstanding borrowings;

• Permanently amends the minimum consolidated interest coverage ratio, the maximum consolidated leverage ratio and distributions in respect of capital stock;

• Amends covenants regarding payment of subordinated obligations, the minimum level of consolidated tangible net worth and investments in subsidiaries and joint ventures; and

• Increases the applicable rates for eurodollar borrowings, the letter of credit fee and the unused commitment fee.

U.S. Bank NA, a lender under the revolving loan agreement, is the trustee to the company's outstanding senior subordinated notes and senior notes.

On Jan. 28, the company said it lowered the revolver to $1.3 billion from $1.5 billion and revised the minimum consolidated tangible net worth covenant.

Bank of America, NA is the administrative agent.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.