By Paul A. Harris
St. Louis, March 27 - KB Home priced a $300 million issue of 7¼% senior notes due June 15, 2018 (Ba1/BB+/BB+) at a 258 basis point spread to Treasuries on Monday, according to an informed source.
The spread came at the tight end of the Treasuries plus 258 to 260 basis point price talk.
The notes came at a dollar price of 99.486 to yield 7.283%.
Banc of America Securities LLC ran the books for the registered, quick-to-market transaction.
Proceeds will be used to refinance the company's revolving credit facility.
The issuer is a Los Angeles-base single-family home builder.
| Issuer: | KB Home
|
| Amount: | $300 million
|
| Maturity: | June 15, 2018
|
| Security description: | Senior notes
|
| Bookrunner: | Banc of America Securities LLC
|
| Coupon: | 7¼%
|
| Price: | 99.486
|
| Yield: | 7.283%
|
| Spread: | 258 bps
|
| Call protection: | Make-whole call at Treasuries plus 35 bps
|
| Trade date: | March 27
|
| Settlement date: | April 3
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BB+
|
| Fitch: BB+
|
| Distribution: | SEC Registered
|
| Price talk: | Treasuries plus 258-260 bps
|
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