By Paul A. Harris
Portland, Ore., July 24 - KB Home priced an upsized $350 million issue of 10-year bullet notes (B2/B/) at par to yield 7½% on Tuesday, according to a prospectus which the company filed with the Securities and Exchange Commission.
The yield printed on top of yield talk, according to market sources. Earlier guidance was 7¾%, according to a buyside source.
Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. were the bookrunners for the quick-to-market issue, which was upsized from $250 million.
The Los Angeles-based homebuilder plans to use the proceeds to fund the tender offers for its 5¾% senior notes due 2014, its 5 7/8% senior notes due 2015 and its 6¼% senior notes due 2015.
| Issuer: | KB Home
|
| Amount: | $350 million, increased from $250 million
|
| Maturity: | Sept. 15, 2022
|
| Securities: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc.
|
| Coupon: | 7½%
|
| Price: | Par
|
| Yield: | 7½%
|
| Spread: | 610 bps over Treasuries
|
| Call protection: | Non-callable
|
| Make-whole call: | Treasuries plus 50 bps
|
| Change-of-control put: | 101%
|
| Trade date: | July 24
|
| Settlement date: | July 31
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Distribution: | SEC registered
|
| Price talk: | 7½% area
|
| Marketing: | Quick to market
|
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