(Source: 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 63/8% 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.
