KB Home debt offers exceed maximum tender amount

LOS ANGELES — Homebuilder KB Home said Thursday the tendered amount for notes in a recently announced offer exceeded the maximum tender amount and it will buy notes on a prorated basis.

The company said it received offers to purchase notes with an aggregate principal amount of more than $316 million as of Thursday.

The company had offered to buy up to $250 million of 6 3/8 percent senior notes due 2011.

Because the aggregate principal amount exceeded the maximum tender amount, notes will be purchased on a pro rata basis. The prorated factor is about 79 percent.

Last month, KB Home said it intends to apply the net proceeds from its public offering of $265 million in aggregate principal amount of 9.100 percent senior notes due 2017, which closed on July 30 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 Aug. 5, will receive $1,010 per $1,000 principal amount of notes, which includes a premium of $30 per $1,000.

Notes purchased after the early deadline will receive $980 per $1,000 principal amount.

Shares of KB Home advanced 31 cents to $17.14 in afternoon trading.