KB Home increases revolving facility to $500 million, extends to 2021

By Wendy Van Sickle

Columbus, Ohio, July 31 – KB Home amended its revolving credit facility to increase availability to $500 million from $275 million and extend the maturity date to July 27, 2021 from Aug. 7, 2019, according to a press release and an 8-K filing with the Securities and Exchange Commission.

The amended credit facility contains an accordion feature that allows availability to be further increased to $600 million. There is a $250 million sublimit for letters of credit.

Interest is Libor plus a margin of 175 basis points to 250 bps, depending on the company’s leverage ratio. The commitment fee is 40 bps based on the current leverage ratio.

Citigroup Global Markets Inc., Bank of the West, Credit Suisse Securities (USA), LLC, Deutsche Bank Securities, Inc. and Bank of America Merrill Lynch are the joint lead arrangers and bookrunners. Citigroup, Bank of the West, Credit Suisse and Deutsche are the co-syndication agents.

Citibank, NA is the administrative agent.

“We are taking another important step forward in executing on our returns-focused growth plan, by increasing the capacity of our credit facility,” Jeffrey Mezger, chairman, president and chief executive officer of KB Home, said in the release.

“With this added liquidity and financial flexibility, we expect to further improve our asset efficiency, as we productively deploy excess cash and utilize the credit facility to meet our short-term capital needs.”

At closing, about $32 million of letters of credit and no loans were outstanding under the credit agreement.

KB Home is a Los Angeles-based homebuilder.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.