Homebuilder KB Home offers bonds to retire debt
Los Angeles based homebuilder KB Home had announced it would be tendering an offer of as much as USD215 million worth of bonds from notes issued worth USD450 million. The said move as to assist in retiring its outstanding debt pile.
The company had sold 7% securities maturing on December 2021 with an interest yield of 460 basis points above Treasury rates. This was according to Bloomberg compiled data. The debt is rated at B2 by the Moody's Investor Service, which has an equivalent rating of B at Standard & Poor's and B+ at Fitch ratings. Originally, the homebuilder had marketed USD350 million worth of notes.
The proceeds would be used to fund the tender offer and the redemption of any redeemable notes that were not purchased, according to a statement issued by KB Home.
The company had offered to buy back from its holders USD76 million of its 5.75% notes maturing on February 2014 for a value of USD1,0139 cents on the dollar and about USD102,2 million in 5,875% debentures falling due on January 2015 at USD1.066 per share.
The offer was managed by Credit Suisse Group AG, Bank of America Corp., Citigroup Inc and Deutsche Bank AG.
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