KB Home Announces Increase in Revolving Credit Facility to $500 Million and Extension of Maturity Date
July 31 2017 - 4:05PM
Business Wire
KB Home (NYSE: KBH) today announced it completed an amendment to
its unsecured revolving credit facility to increase the borrowing
availability to $500 million from $275 million, with a $250 million
letter of credit sublimit, and extend the maturity date to July
2021 from August 2019. The amended credit facility also contains an
accordion feature under which the borrowing availability can be
further increased to $600 million, subject to additional lender
commitments.
“We are taking another important step forward in executing on
our returns-focused growth plan, by increasing the capacity of our
credit facility. With this added liquidity and financial
flexibility, we expect to further improve our asset efficiency, as
we productively deploy excess cash and utilize the credit facility
to meet our short-term capital needs,” said Jeffrey Mezger,
chairman, president and chief executive officer. “We appreciate the
support from our banking partners, and the confidence in the
strength of our business that the commitment to a substantially
larger credit facility reflects.”
Citibank, N.A. is serving as the Administrative Agent for the
amended credit facility. Joint Lead Arrangers and Joint Bookrunners
are Citigroup Global Markets Inc., Bank of the West, Credit Suisse
Securities (USA), LLC, Deutsche Bank Securities, Inc., and Merrill
Lynch, Pierce, Fenner & Smith Incorporated. Lenders are
Citibank, N.A.; Bank of America, N.A., Bank of the West, Credit
Suisse AG, Cayman Islands Branch, and Deutsche Bank AG New York
Branch, which are also serving as Syndication Agents; and MUFG
Union Bank, N.A., Wells Fargo Bank, N.A., ZB, N.A. dba California
Bank & Trust, and Texas Capital Bank, N.A.
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; 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; 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 amended
credit facility; 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20170731005237/en/
KB HomeInvestor Relations Contact:Jill Peters(310)
893-7456investorrelations@kbhome.comorMedia Contact:Susan
Martin(310) 231-4142smartin@kbhome.com
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