KB Home Announces Final Results of its Tender Offer for its 6 3/8% Senior Notes Due 2011
LOS ANGELES, Aug 20, 2009 (BUSINESS WIRE) -- KB Home (NYSE:KBH), one of America's premier homebuilders, today
announced the expiration and final results of its tender offer to
purchase up to $250,000,000 in aggregate principal amount (the "Maximum
Tender Amount") of its 6 3/8% Senior Notes Due 2011 (the "2011 Notes").
The tender offer was made pursuant to an Offer to Purchase dated July
23, 2009, which sets forth a more detailed description of the terms of
the tender offer.
As of 9:00 a.m., New York City time, on August 20, 2009, the aggregate
principal amount of 2011 Notes tendered was $316,075,000. Because the
aggregate principal amount of 2011 Notes tendered exceeded the Maximum
Tender Amount, tendered notes will be purchased on a pro rata basis. As
a result, KB Home accepted $250,000,000 in aggregate principal amount of
2011 Notes for payment, with settlement expected today. The proration
factor, as determined pursuant to the Offer to Purchase, is
approximately 79%. As previously announced, KB Home intends to apply the
net proceeds from its public offering of $265 million in aggregate
principal amount of 9.100% Senior Notes due 2017, which closed on July
30, 2009, toward the payment of accepted 2011 Notes.
Holders whose 2011 Notes have been accepted for payment and who tendered
before the "Early Tender Date" of 5:00 p.m., New York City time, on
August 5, 2009, will receive $1,010 per $1,000 principal amount of notes
accepted for payment, which includes the Early Tender Premium of $30 per
$1,000 principal amount. Holders whose 2011 Notes have been accepted for
payment and who tendered after the Early Tender Date will receive $980
per $1,000 principal amount of notes accepted for payment.
Citi served as dealer manager for the tender offer. Global Bondholder
Services Corporation served as the depositary and information agent.
For additional information regarding the terms of the tender offer,
please contact Citi at (800)-558-3745 (toll free) or (212)-723-6106
(collect). Requests for documents and questions regarding the tender of
securities may be directed to Global Bondholder Services Corporation at
(866)-540-1500 (toll free) or (212)-430-3774 (collect).
Copies of the Offer to Purchase and the Letter of Transmittal related to
the tender offer may also be obtained at no charge from Global
Bondholder Services Corporation.
This announcement does not constitute an offer to buy or the
solicitation of an offer to sell securities. The tender offer has been
made solely by means of the Offer to Purchase and the related Letter of
Transmittal. In those jurisdictions where the securities, blue sky or
other laws require the Tender Offer to be made by a licensed broker or
dealer, the Tender Offer has been deemed to be made on behalf of KB Home
by the dealer manager or one or more registered brokers or dealers
licensed under the laws of such jurisdiction.
Corporate Profile
KB Home, one of the nation's leading homebuilders, has delivered
hundreds of thousands of quality homes for families since its founding
in 1957. The Company is distinguished by its Built to Order(TM)
homebuilding approach that puts a custom home experience within reach of
its customers at an affordable price. KB Home's award-winning homes and
communities meet the needs of first-time homebuyers with flexible
designs that also appeal to move-up buyers and active adults. Los
Angeles-based KB Home was named the #1 homebuilder on FORTUNE(R)
magazine's 2009 "World's Most Admired Companies" list. This marks the
second year in a row and the third time in the past four years that KB
Home has achieved the top ranking. The Company trades under the ticker
symbol "KBH," and was the first homebuilder listed on the New York Stock
Exchange. For more information about any of KB Home's new home
communities call 888-KB-HOMES or visit www.kbhome.com.
Forward-Looking and Cautionary Statements
Certain matters discussed in this press release, including any
statements that are predictive in nature or concern future market and
economic conditions, business and prospects, our future financial and
operational performance, or our future actions and their expected
results are "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements are based on current expectations and projections about
future events and are not guarantees of future performance. We do not
have a specific policy or intent of updating or revising forward-looking
statements. Actual events and results may differ materially from those
expressed or forecasted in forward-looking statements due to a number of
factors. The most important risk factors that could cause our actual
performance and future events and actions to differ materially from such
forward-looking statements include, but are not limited to: general
economic and business conditions; adverse market conditions that could
result in additional inventory impairments or abandonment charges and
operating losses, including an oversupply of unsold homes and declining
home prices, among other things; conditions in the capital and credit
markets (including consumer mortgage lending standards, the availability
of consumer mortgage financing and mortgage foreclosure rates); material
prices and availability; labor costs and availability; changes in
interest rates; inflation; our debt level; weak consumer confidence;
increases in competition; weather conditions, significant natural
disasters and other environmental factors; government actions and
regulations directed at or affecting the housing market, the
homebuilding industry, or construction activities; the availability and
cost of land in desirable areas; legal or regulatory proceedings or
claims; the ability and/or willingness of participants in our
unconsolidated joint ventures to fulfill their obligations; our ability
to access capital, including our capacity under our credit facility; our
ability to use the net deferred tax assets we have generated; our
ability to successfully implement our current and planned product
transition, geographic and market positioning and cost reduction
strategies; consumer interest in our new product designs; and other
events outside of our control. Please see our periodic reports and other
filings with the Securities and Exchange Commission for a further
discussion of these and other risks and uncertainties applicable to our
business.
SOURCE: KB Home
KB Home
Kelly Masuda, Investor Contact
(310) 893-7434
kmasuda@kbhome.com
Copyright Business Wire 2009