KB Home: No near-term plans to raise capital for land purchases; debt maturities in 'good shape'

By Lisa Kerner

Charlotte, N.C., May 14 - KB Home's balance sheet has been restructured for growth, according to chief financial officer Jeff Kaminski.

The company is in "very good shape from a debt maturity profile point of view," said Kaminski on Wednesday during a presentation at the J.P. Morgan Homebuilding and Building Products Conference in New York.

According to the presentation, the Los Angeles-based homebuilder has significantly extended and flattened its senior debt maturities by refinancing $800 million of near-term debt in 2012 and 2013.

KB Home has $200 million of debt coming due next June, and then its next debt maturity is September 2017.

The company completed a "couple of capital market transactions" early in the second quarter and has "enough liquidity to take us well into (20)15 if not into beyond," Kaminski said.

"With our land investment plans, we have no further plans to raise capital in order to finance those plans."

Land investments for 2014 are expected to total between $1.4 billion and $1.6 billion.

Kaminski said the company has additional liquidity in the form of an untapped revolver currently at $200 million with a $100 million accordion, which KB Home plans to expand out "at the correct point in time."

In addition, the company has raised more than $800 million of growth capital through offerings of common stock and convertible senior notes or senior notes since early 2013.

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