KB Home announces cash tender offer for senior bonds due 2021

LOS ANGELES–(COMMERCIAL THREAD) – KB Home (NYSE: KBH) today announced the launch of a cash tender offer (the “Offer“) for all of its outstanding 7,000% senior notes due 2021 (the”Remarks“), under the terms and subject to the conditions set out in the Offer to Purchase, dated the date hereof (the”Bid“) and the accompanying Notice of Guaranteed Delivery (the”Guaranteed delivery notice“). The Offer to Purchase and the Notice of Guaranteed Delivery are referred to collectively herein as “Offer documents”.

The Offer will expire at 5:00 p.m. New York time on June 8, 2021, unless extended or terminated earlier by KB Home (such date and time, as may be extended for Offer, the “Expiration date“).

Security title

CUSIP number

The principal amount

Exceptional

Consideration of the offer in increments of $ 1,000

Principal amount of tickets

7.000% Senior Notes due 2021

48666KAT6

$ 450,000,000

$ 1,017.25

Holders must validly deposit their Notes or deliver a duly completed and signed Notice of Guaranteed Delivery on or before the Expiry Date to be eligible to receive consideration for the Offer (as set out in the table above). In addition, Holders whose Notes are purchased under the Offer will receive accrued and unpaid interest on such Notes from the last interest payment date up to, but not including, the settlement date (such as as defined in the offer to purchase) (such amount, the “Increased interest“). The Company expects the settlement date to be June 9, 2021. Notes deposited by notice of guaranteed delivery and accepted for purchase will be purchased on the third business day after the expiration date, but payment of accrued interest on these tickets will only be made on, but not included in, the settlement date.

Deposited tickets may be validly withdrawn from the offer at or at any time before the expiration date (such time and date, the “Deadline for withdrawal“), unless extended or terminated earlier by KB Home as described in the offer to purchase. Deposited Securities may not be withdrawn after the Withdrawal Deadline, except as required by law.

The Offer is subject to the satisfaction or waiver of certain conditions described in the Offer to Purchase and is not conditional on the deposit of a minimum principal amount of Notes. If any of the conditions are not met, subject to applicable law, KB Home may, in its sole discretion, terminate the Offer and return the deposited tickets, may waive any unfulfilled conditions and accept for payment and purchase all Notes validly deposited, may extend the Expiration Date or may otherwise modify the Offer in any regard. KB Home expressly reserves the right, at its sole discretion, subject to applicable law, to terminate the Offer at any time.

The full terms and conditions of the Offer are set out in the Offer Documents which are sent to the holders of the Notes. Unitholders are requested to carefully read the Offer Documents when they become available, to consult their own investment and tax advisers and to make their own decisions regarding the contribution of the Notes to the Offer and, where applicable, the principal amount of the Notes to be contributed.

The Offer is open to all holders of Notes. A beneficial owner of Notes held by a broker, broker, commercial bank, trust company or other nominee (each, a “Guardian”), Must instruct this Custodian to deposit these Notes in the name of the beneficial owner in good time. Beneficial owners should be aware that a Custodian may set its own deadline for participation in the Offer.

KB Home has retained the services of BofA Securities, Inc. to act on its behalf as Dealer Manager and Global Bondholder Services Corporation to act as custodian and information agent in connection with the Offer. For assistance with the terms of the offer, please contact BofA Securities, Inc at (980) 388-3646 (collect). Requests for documents relating to the Offer may be made to Global Bondholder Services Corporation by telephone at (866) 470-3700 (toll free) or (212) 430-3774 (collect).

Copies of the Offer Documents are available at the following Internet address: https://www.gbsc-usa.com/kbhome/.

This press release is provided for informational purposes only and does not constitute an offer to purchase or the solicitation of an offer to purchase with respect to any of the Notes. The Offer is being made in accordance with the Offer Documents, including the Offer to Purchase that KB Home distributes to holders of the Notes. The Offer is not made to Noteholders in any jurisdiction in which the realization or acceptance thereof would not be in accordance with the securities laws or other laws of that jurisdiction. None of KB Home, the Dealer Manager, the Trustee (as defined in the Tender Offer) or their respective affiliates makes any recommendation as to whether Holders should bring any or all of their Notes to the Offer.

About KB

KB Home is one of the largest and most recognized home builders in the United States, and has been building quality homes for over 60 years. Today, KB Home operates in 45 markets in eight states, serving a wide variety of buyer groups. What sets KB Home apart is how it gives customers the flexibility to customize their homes, from living sites and floor plans to cabinets and countertops, at a price that fits their budget. KB Home is the first builder to make every home they build ENERGY STAR® approved. In fact, KB Home goes beyond EPA requirements by ensuring that every ENERGY STAR certified KB home has been tested and verified by a third-party inspector to meet stringent EPA certification standards, which helps reduce the cost of ownership and make new homes healthier and more comfortable than new ones without certification. KB Home also works with its clients every step of the way, building strong personal relationships so that they have a true partner in the home buying process, and the experience is as straightforward and easy as possible. Learn more about how KB Home builds relationship-based homes by visiting kbhome.com.

Forward-looking statements and cautions

Statements in this press release that state the intentions, expectations or predictions of KB Home or its management are forward-looking statements. More specifically, KB Home cannot guarantee that the Offer will be executed under the conditions currently envisaged, if at all. Forward-looking statements involve risks and uncertainties, and actual results may differ materially from those projected or implied. KB Home disclaims any intention or obligation to revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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