KB Home (KBH: Quote) announced the pricing of concurrent underwritten public offerings of 5.5 million shares of common stock at public offering price of $18.25 per share (or up to 6.325 million shares if the underwriters exercise their option to purchase additional shares).
The company also agreed to sell $200 million of 1.375% convertible senior notes due 2019 (or up to $230 million if the underwriters exercise their over-allotment option).
The closing of both offerings is expected to occur on January 29, 2013.
KB Home sees offerings net proceeds to be about $289 million, after deducting expenses. KB Home intends to use offering net proceeds for general corporate purposes, including without limitation land acquisition and development.
The convertible senior notes will bear interest at a rate of 1.375% per year, payable semi-annually in arrears, and will mature in 2019, unless earlier purchased, redeemed or converted. The senior notes are convertible into shares of KB Home’s common stock at an initial conversion rate of 36.5297 shares per $1,000 principal amount of senior notes.
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by RTT Staff Writer
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