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KB Home gets tenders for $187.1 million 5¾%, 5 7/8%, 6¼% notes so far
By Angela McDaniels
Tacoma, Wash., Oct. 29 - KB Home announced the early results of its tender offers for any and all of its $75.97 million of outstanding 5¾% senior notes due 2014, any and all of its $102,172,000 of outstanding 5 7/8% senior notes due 2015 and up to $37 million of its $236,906,000 of outstanding 6¼% senior notes due 2015.
As of 5 p.m. ET on Oct. 28, the early tender date, holders had tendered $19,698,000 principal amount, or 25.9%, of the 5¾% notes, $91,053,000 principal amount, or 89.1%, of the 5 7/8% notes and $76,345,000 principal amount, or 32.2%, of the 6¼% notes, according to an 8-K filing with the Securities and Exchange Commission.
All of the tendered 5¾% notes and 5 7/8% notes and $37 million of the tendered 6¼% notes were accepted for purchase. Because the offer cap for the 6¼% notes has already been exceeded, no 6¼% notes tendered after the early tender date will be accepted for purchase.
The company also issued a redemption notes for the 5¾% notes and 5 7/8% notes. The make-whole redemption will be made on Nov. 29, and the payments will be calculated using Treasuries plus 30 basis points.
The tender offers began Oct. 15 and will continue until 11:59 p.m. ET on Nov. 12.
For each $1,000 principal amount, the company is offering $1,013.85 for the 5¾% notes, $1,065.95 for the 5 7/8% notes and $1,075.00 for the 6¼% notes. These payments include an early tender payment of $30.00 for each note tendered by the early tender date.
The company will also pay accrued interest.
Early settlement was expected to occur Oct. 29. Final settlement is slated for Nov. 13.
Citigroup Global Markets, Inc. (800 558-3745 or 212 723-6106) and Credit Suisse Securities (USA) LLC (800 820-1653 or 212 325-2476) are the dealer managers for the tender offer. The information agent is Global Bondholder Services Corp. (866 470-4500 or 212 430-3774).
KB Home is a Los Angeles-based homebuilder.
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