LOS ANGELES--(BUSINESS WIRE)--
KB Home (NYSE: KBH) today announced it repaid the remaining $165 million
in aggregate principal amount of its 9.100% Senior Notes due 2017 at
their maturity on September 15, 2017. The Company used internally
generated cash to retire the notes.
"We are pleased to have surpassed the initial debt reduction goal we
shared at our investor conference last year. By repaying the full amount
of our 2017 senior notes with cash flow from operations, including the
partial redemption of the notes we completed earlier this year, we
exceeded one of the milestones of our three-year returns-focused growth
plan - reducing our debt balance by a minimum of $250 million," said
Jeffrey Mezger, chairman, president and chief executive officer.
"Eliminating this debt, which was our most expensive, will allow us to
meaningfully reduce our interest incurred, helping to support future
improvement in our gross margins. Overall, we are confident in our
ability to make continued progress on the targets under our
returns-focused growth plan, and increase long-term stockholder value."
About KB Home
KB Home (NYSE: KBH) is one of the largest homebuilders in the United
States, with nearly 600,000 homes delivered since our founding in 1957.
We operate in 36 markets in 7 states, primarily serving first-time and
first move-up homebuyers, as well as active adults. We are
differentiated in offering customers the ability to personalize what
they value most in their home, from choosing their lot, floor plan, and
exterior, to selecting design and décor choices in our KB Home Studios.
In addition, we are an industry leader in sustainability, building
innovative and highly energy- and water-efficient homes. We invite you
to learn more about KB Home by visiting www.kbhome.com,
calling 888-KB-HOMES, or connecting with us on Facebook.com/KBHome
or Twitter.com/KBHome.
Forward-Looking and Cautionary Statements
Certain matters discussed in this press release, including any
statements that are predictive in nature or concern 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, including, but not limited to the following: general economic,
employment and business conditions; conditions in the capital, credit
and financial markets; our ability to access external financing sources
and raise capital through the issuance of common
stock, debt or other securities, and/or project financing, on favorable
terms; material and trade costs and availability; changes in interest
rates; our debt level, including our ratio of debt to capital, and our
ability to adjust our debt level and maturity schedule; our compliance
with the terms of our revolving credit facility; weak or declining
consumer confidence, either generally or specifically with respect to
purchasing homes; competition from other sellers of new and resale
homes; weather events, significant natural disasters and other climate
and environmental factors; the availability and cost of land in
desirable areas; our warranty claims experience with respect to homes
previously delivered and actual warranty costs incurred; costs and/or
charges arising from regulatory compliance requirements or from legal,
arbitral or regulatory proceedings, investigations, claims or
settlements, including unfavorable outcomes in any such matters
resulting in actual or potential monetary damage awards, penalties,
fines or other direct or indirect payments, or injunctions, consent
decrees or other voluntary or involuntary restrictions or adjustments to
our business operations or practices that are beyond our current
expectations and/or accruals; our ability to successfully implement our
current and planned strategies and initiatives related to our product,
geographic and market positioning, gaining share and scale in our served
markets; our operational and investment concentration in markets in
California; consumer interest in our new home communities and products,
particularly from first-time homebuyers and higher-income consumers; our
ability to generate orders and convert our backlog of orders to home
deliveries and revenues, particularly in key markets in California; our
ability to successfully implement our returns-focused growth plan and
achieve the associated revenue, margin, profitability, cash flow,
community reactivation, land sales, business growth, asset efficiency,
return on invested capital, return on equity, net debt-to-capital ratio
and other financial and operational targets and objectives; 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170918005432/en/
KB Home
Jill Peters, (310) 893-7456
Investor Relations Contact
investorrelations@kbhome.com
or
Susan
Martin, (310) 231-4142
Media Contact
smartin@kbhome.com
Source: KB Home
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