KB Home Announces Pricing of Senior Notes Due 2030

KB Home (NYSE: KBH) today announced that it has priced an offering of $350.0 million in aggregate principal amount of its 7.25% senior unsecured notes due 2030. The offering is being made under an existing shelf registration statement that KB Home previously filed with the Securities and Exchange Commission (“SEC”).

The senior notes due 2030 will bear interest at a rate of 7.25% per annum and will be issued at a public offering price of 100.00%. The senior notes will be guaranteed on an unsecured basis by KB Home’s subsidiaries that have guaranteed KB Home’s outstanding senior notes.

KB Home estimates the aggregate net proceeds from the offering to be approximately $345.5 million, after deducting the underwriting discount and estimated offering expenses payable by KB Home. KB Home intends to use the net proceeds from the offering together with cash on hand, as needed, toward the retirement of its outstanding 7.5% Senior Notes due 2022, by redemption pursuant to the optional redemption terms specified for such notes, purchase or repayment at maturity. KB Home intends to use any remaining net proceeds from the senior notes offering for general corporate purposes.

The closing of the senior notes offering is expected to occur on June 22, 2022, subject to the satisfaction of customary closing conditions. Citigroup Global Markets Inc., BofA Securities, Inc., BNP Paribas Securities Corp., Fifth Third Securities, Inc., J.P. Morgan Securities LLC and Wells Fargo Securities, LLC, are acting as book-running managers for the offering.

A copy of the prospectus supplement and accompanying prospectus describing the offering, when available, may be obtained by visiting EDGAR on the SEC’s website at www.sec.gov or by contacting Citigroup at the following address: c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, email: [e-mail] or toll free at 1-800-831-9146, or BofA Securities at the following address: BofA Securities, NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte, NC 28255-0001, Attn: Prospectus Department, email: [e-mail], or BNP PARIBAS at the following address: Attn: Syndicate Desk, 787 Seventh Avenue, New York, NY 10019, email: [e-mail] or toll free at 1-800-854-5674, or Fifth Third Securities, 38 Fountain Square Plaza, Cincinnati, Ohio 45263, toll free at 1-866-531-5353, or J.P. Morgan Securities LLC at the following address: c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by calling (866)-803-9204, or Wells Fargo Securities at the following address: Attn: WFS Customer Service, 608 2nd Avenue South, Suite 1000, Minneapolis, MN 55402, email: [e-mail] or toll free at 1-800-645-3751.