KB Home seals $200 million revolver with accordion led by Citigroup

By Susanna Moon

Chicago, March 18 - KB Home closed a new $200 million three-year unsecured revolving credit facility on March 12, arranged by Citigroup Global Markets Inc., according to an 8-K filing with the Securities and Exchange Commission.

The facility will mature on March 12, 2016 or on Sept. 15, 2014 if the aggregate principal amount of the company's senior notes that mature in 2015 is greater than $200 million on that date.

The facility contains an accordion feature that allows total commitments of up to $300 million, and there is a sublimit of $100 million for letters of credit.

The unused fee is 75 basis points.

Proceeds may be used for general corporate purposes, including permitted acquisitions.

At closing, the facility was undrawn.

Citibank, NA is the administrative agent. The other lenders are Bank of America, Credit Suisse and Deutsche Bank.

"The new unsecured revolving credit facility further enhances our capital structure by providing an additional source of readily accessible liquidity," Jeff Kaminski, executive vice president and chief financial officer of KB Home, said in a company press release.

"Together with the net proceeds from our recently completed offerings of common stock and convertible senior notes, we have expanded our available liquidity in the last two months by more than half a billion dollars to support our accelerated growth plans."

KB Home is a Los Angeles-based homebuilder.

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