KB Home (NYSE:KBH) Issues Senior Notes Of $450 Million


Dallas, Texas 10/17/2013 (Financialstrend) – Los Angeles based KB Home (NYSE:KBH) is into construction of residential houses and communities.  Over the past couple of days, it has released a series of press notes announcing redemption of notes and issuing of new senior notes. These financial restructuring was initiated in the back ground of 3Q dividend payout announcement on October 10. As per the dividend payout plan, share holders of KB Home (KBH) will get paid $0.025 per share on November 21. All share holders on record as of November 7 will be eligible for the payout. The stock will go ex dividend on November 5.

The October 15 announced restructuring of its debt financing is centred on collecting close to $450 million through the issuance of senior notes which will become due in 2021. The senior notes will attract an interest of 7.0% per annum. These notes will be issued through a public offering, priced at 100% of their face value. The senior notes offer is slated to be closed on October 29. The house construction company has plans of retiring its previously issued senior notes which are going to mature during different timeframes between 2014 and 2015.

KB Home (NYSE:KBH) attempt to reschedule its debt repayment and generate capital for new projects come on the back of gains the stock experienced post announcement of its 3Q results. Investors were informed by management that in a conscious decision, the company has started concentrating on the coastal region of California due to the return of high margins instead of selling more units in the inland California region.

At close of business on October 16, the share price was $16.44 per share up 2.18% from its previous day close. The stock had gained 0.43% in valuation over the past one week of trading. Analysts have a PT of $19.13 for the stock.