New Issue: KB Home prices $300 million 10-year bullet at par to yield 4.8%

By Paul A. Harris

Portland, Ore., Oct. 21 – KB Home priced a $300 million issue of 10-year senior bullet notes (Ba3/BB-) at par to yield 4.8% in a quick-to-market Monday trade, according to market sources.

Initial guidance was in the 5 1/8% area, a trader said.

Citigroup Global Markets Inc., BNP Paribas Securities Corp., BofA Securities Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are the joint bookrunners for the public offering.

The Los Angeles-based home builder plans to use the proceeds to redeem its 8% senior notes due 2020.

Issuer:	KB Home
Amount:	$300 million
Maturity:	Nov. 15, 2029
Securities:	Senior notes
Active bookrunners:	Citigroup Global Markets Inc. (bill and deliver), BofA Securities Inc., BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC
Coupon:	4.8%
Price:	Par
Yield:	4.8%
Call protection:	Make-whole call at Treasuries plus 50 bps until six months prior to maturity, then callable at par, otherwise non-callable
Trade date:	Oct. 21
Settlement date:	Nov. 4
Ratings:	Moody's: Ba3
	S&P: BB-
Distribution:	SEC registered
Marketing:	Quick to market
Guidance:	5 1/8% area

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