KB Home increases revolving facility to $275 million, extends to 2019

By Tali Rackner

Norfolk, Va., Aug. 11 – KB Home entered into an amended and restated revolving loan agreement on Aug. 7 that increases commitments under the unsecured revolving credit facility to $275 million from $200 million and extends the maturity to Aug. 7, 2019 from March 12, 2016, according to an 8-K filing with the Securities and Exchange Commission.

The amended credit facility contains an accordion feature under which the aggregate maximum principal amount of available loans may be increased to up to $450 million. It also includes a $137.5 million sublimit for letters of credit.

Interest is Libor plus 175 basis points to 275 bps, based on KB Home’s leverage ratio. The commitment fee at closing is 45 bps.

Citigroup Global Markets Inc. serves as lead arranger and book manager, and Citibank, NA serves as the administrative agent and is a lender.

The amended credit facility replaces the company’s prior unsecured revolving credit facility, originally entered into on March 12, 2013.

At the closing, the company had about $2.6 million of letters of credit and no loans outstanding under the prior facility.

KB Home is a Los Angeles-based homebuilder.

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