By Paul A. Harris
St. Louis, June 23 - KB Home priced a quick-to-market $350 million issue of seven-year senior notes (Ba1/BB+) Wednesday at 99.281 with a 6 3/8% coupon to yield 6½%, according to a syndicate source.
Price talk was in the area of 6½%.
Banc of America Securities ran the books for the Rule 144A issue. The co-managers were Banc One Capital Markets, Royal Bank of Scotland, Credit Lyonnais, BNP Paribas and Comerica.
Proceeds will be used to repay debt.
The issuer is a homebuilder based in Los Angeles.
| Issuer: | KB Home
|
| Amount: | $350 million
|
| Maturity: | Aug. 15, 2011
|
| Security description: | Senior notes
|
| Bookrunner: | Banc of America Securities
|
| Co-managers: | Banc One Capital Markets, Royal Bank of Scotland, Credit Lyonnais, BNP Paribas, Comerica
|
| Coupon: | 6 3/8%
|
| Price: | 99.281
|
| Yield: | 6½%
|
| Spread: | 214 basis points
|
| Call protection: | Make-whole call at Treasuries plus 30 basis points
|
| Pricing date: | June 23
|
| Settlement date: | June 30
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BB+
|
| Price talk: | 6½% area
|
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