KB Home Announces Completion of Cash Tender Offer for Senior Notes
June 09 2021 - 04:10PM
Business Wire
KB Home (NYSE: KBH) today announced the results of its
previously announced cash tender offer (the “Tender Offer”) for any
and all of its outstanding 7.000% Senior Notes due 2021 (the “2021
Notes”), totaling $450,000,000 in aggregate principal amount. The
Tender Offer expired at 5:00 p.m., New York City time, on June 8,
2021 (the “Expiration Date”).
As of the Expiration Date, a total of $269,829,000 in aggregate
principal amount of the 2021 Notes had been validly tendered in the
Tender Offer, excluding $2,686,000 in aggregate principal amount of
2021 Notes that remain subject to guaranteed delivery procedures.
The Company accepted for purchase all of the 2021 Notes that were
validly tendered, paid the Offer Consideration (as defined below)
(plus accrued and unpaid interest) thereon and settled the Tender
Offer (other than with respect to the 2021 Notes that remain
subject to guaranteed delivery procedures) on June 9, 2021 (the
“Settlement Date”).
In accordance with the terms and subject to the conditions of
the Tender Offer, the Company offered to make a cash payment to all
holders who validly tendered their 2021 Notes in the Tender Offer
of $1,017.25 per $1,000 principal amount of 2021 Notes tendered
(the “Offer Consideration”), plus accrued and unpaid interest
thereon to, but not including, the Settlement Date. With respect to
2021 Notes accepted for purchase that were tendered and are
subsequently delivered in accordance with the guaranteed delivery
procedures, the Company expects such tendering holders to receive
payment of the Offer Consideration for such accepted 2021 Notes on
June 11, 2021, plus accrued and unpaid interest thereon to, but not
including, the Settlement Date. The Company is funding the payment
for tendered and accepted 2021 Notes with a portion of the net
proceeds from its previously announced issuance and sale of $390
million in aggregate principal amount of new 4.00% Senior Notes due
2031.
This press release is for informational purposes only and is not
an offer to purchase or a solicitation of an offer to purchase with
respect to any of the 2021 Notes. This press release is not a
redemption notice for the 2021 Notes.
About KB Home
KB Home is one of the largest and most recognized homebuilders
in the United States and has been building quality homes for over
60 years. Today, KB Home operates in 45 markets across eight
states, serving a wide array of buyer groups. What sets us apart is
how we give our customers the ability to personalize their homes
from homesites and floor plans to cabinets and countertops, at a
price that fits their budget. We are the first builder to make
every home we build ENERGY STAR® certified. In fact, we go beyond
the EPA requirements by ensuring every ENERGY STAR certified KB
home has been tested and verified by a third-party inspector to
meet the EPA’s strict certification standards, which help to lower
the cost of ownership and to make our new homes healthier and more
comfortable than new ones without certification. We also work with
our customers every step of the way, building strong personal
relationships so they have a real partner in the homebuying
process, and the experience is as simple and easy as possible.
Learn more about how we build homes built on relationships by
visiting kbhome.com.
Forward-Looking and Cautionary Statements
You are cautioned that certain statements contained or
incorporated or deemed to be incorporated by reference in this
press release are “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995 (the
“Act”). Statements that are predictive in nature, that depend upon
or refer to future events or conditions, or that include words such
as “expects,” “anticipates,” “intends,” “plans,” “believes,”
“estimates,” “hopes,” and similar expressions constitute
forward-looking statements. Forward-looking statements, including
those relating our settlement of the Tender Offer and the payment
of the Offer Consideration, plus accrued and unpaid interest
thereon to, but not including, the Settlement Date with respect to
the 2021 Notes that remain subject to guaranteed delivery
procedures, are based on our current expectations and projections
about future events and are subject to risks, uncertainties, and
assumptions. These statements are not guarantees of future
performance, and we have no specific policy or intention to update
these statements whether as a result of new information, future
events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20210609005223/en/
For Further Information: Jill Peters, Investor Relations
Contact (310) 893-7456 or investorrelations@kbhome.com
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