Homebuilder Kicks Off $250 Million Debt Offer (KBH)
Last month homebuilder KB Home (NYSE: KBH) launched a tender offer to redeem notes due in 2014 and 2015, saying it would accept up to $100 million in requests to buy back the 2014 notes. To date, the company has…
Last month homebuilder KB Home (NYSE: KBH) launched a tender offer to redeem notes due in 2014 and 2015, saying it would accept up to $100 million in requests to buy back the 2014 notes. To date, the company has received valid tenders totalling $56.3 million for the 2014 and total tenders valued at $423.8 million.
To pay for the redemptions, KB is today launching a $250 million debt offering to pay for the claims.
Somehow, KB shares are up nearly 3% this morning at $9.28 in a 52-week range of $5.02-$15.30. Hope springs eternal, but it’s not a strategy.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
