Citibank served as administrative agent on an amendment to KB Home’s revolving credit facility, which increased the borrowing capacity to $800 million from $500 million and extended the maturity date to October 2023 from July 2021.
The borrowing capacity can be further increased to $1 billion, subject to additional lender commitments.
“Over the past two years since we last increased our credit facility, we have demonstrated strong execution under our returns-focused growth plan and improved our key financial performance metrics, including revenues, housing gross profit margin, diluted earnings per share and our debt to capital ratio. This performance enabled us to significantly expand our credit facility again, which we expect will enhance the flexibility of our capital structure, allowing us to productively deploy excess cash while meeting short-term capital needs,” said Jeffrey Mezger, chairman, president and CEO of KB Home. “We appreciate the support of our banking partners and their confidence in our business.”_x000D_
Citibank also served as a lender, joint lead arranger and joint bookrunner, along with, BofA Securities, Bank of the West, Credit Suisse Securities (USA), Deutsche Bank Securities and Wells Fargo Securities. Bank of America, Bank of the West, Credit Suisse, Cayman Islands Branch, Deutsche Bank Securities and Wells Fargo Bank acted as syndication agents, certain of which are also lenders. Additional lenders with commitments under the amended credit facility were Deutsche Bank, New York Branch, Fifth Third Bank, Texas Capital Bank, BMO Harris Bank, CIBC Bank, MUFG Union Bank, Regions Bank and Zions Bancorporation d/b/a California Bank & Trust.
KB Home is one of the largest homebuilders in the United States and has been building quality homes for over 60 years. It operates in 38 markets across eight states and serves a wide array of buyer groups.
