KB Home (KBH: Quote) reported preliminary quarter-to-date net orders for its first fiscal quarter of 2013. Net orders for new homes were 750 quarter-to-date through January 18, 2013, representing an increase of 54%, compared to net orders of 488 through January 20, 2012 in the first quarter of last year.
While the improved quarter-to-date net orders compare favorably to the weak net order performance in the prior year period, the relative improvement is expected to moderate as the fiscal first quarter 2013 continues, the company said.
In a separate press release, KB Home said it plans to commence concurrent underwritten public offerings of $100 million of its common stock, or up to $115 million if the underwriters exercise their option to purchase additional shares, and $150 million in aggregate principal amount of convertible senior notes due 2019 or up to $172.5 million in aggregate principal amount of notes if the underwriters exercise their over-allotment option.
Citigroup, Credit Suisse, BofA Merrill Lynch and Deutsche Bank Securities will act as joint book-running managers for the proposed offerings.
KB Home said it intends to use the net proceeds from both offerings for general corporate purposes, including without limitation land acquisition and development.
Separately, KB Home announced that it has engaged Citigroup Global markets Inc. to assemble a syndicate of financial institutions to provide a new unsecured revolving credit facility in an initial principal amount of up to $200 million, with an option to potentially increase the principal amount to up to $300 million.
In addition, Fitch Ratings said it has assigned a ‘B+/RR4’ rating to KB Home’s proposed offering of $150 million convertible senior unsecured notes due 2019. The new issue will be equal in right of payment with all other senior unsecured debt. Concurrent with the notes offering, KBH also announced the public offering of $100 million of its common stock. The Rating Outlook is Stable.
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by RTT Staff Writer
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