KB Home gets more default notices for delayed 10-Q filing

By Caroline Salls

Pittsburgh, Nov. 6 - KB Home received purported notices of default from indenture trustee U.S. Bank for failure to deliver its 10-Q quarterly report for the period ended Aug. 31 to the trustee, according to an 8-K filing with the Securities and Exchange Commission.

The notices of default apply to KB Home's 7¼% senior notes due 2018, 6¼% senior notes due 2015, 5 7/8% senior notes due 2015 and 5¾% senior notes due 2014 as well as its 8 5/8% senior subordinated notes due 2008, 7¾% senior subordinated notes due 2011 and 9½% senior subordinated notes due 2011.

Under the indentures, KB Home has 60 days to cure the defaults before the notes can be accelerated.

KB Home said it is reviewing the default notice letters, along with the other default notice letters it previously received, and is considering their validity as notices of default.

The company has delayed the filing of its third-quarter 10-Q with the SEC to allow additional time to complete an internal review of its historical stock option grants and related accounting.

KB Home said it intends to file the 10-Q and provide copies to the indenture trustee by Dec. 24, thereby curing any default.

As previously reported, KB Home is soliciting consents from the holders of record as of 5 p.m. ET on Oct. 24 of its senior notes to approve a proposed amendment to the senior notes indenture to extend the time for the company to file the third-quarter 10-Q to no later than Feb. 23.

The consent solicitation is set to expire at 5 p.m. ET on Nov. 7.

KB Home is a Los Angeles-based builder of single-family homes.

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