European Investor
13 Nov 2025, 15:32
KB Home secures 1.2 billion dollar revolving credit line and extends 360 million dollar term loan maturity
KB Home disclosed in an 8-K filing that on November 12, 2025 it entered into a new 1.2 billion dollar revolving credit facility with a syndicate of lenders led by Bank of America. The facility replaces the company’s prior 1.09 billion dollar revolver and matures on November 12, 2030. The commitment may be increased to as much as 1.7 billion dollars if additional lenders participate. Proceeds may be used for general corporate purposes.
The homebuilder also amended and restated its existing 360 million dollar senior unsecured term loan, extending its maturity to November 12, 2029.
Both the revolver and term loan include customary financial and operational covenants—covering tangible net worth, leverage, liquidity, interest coverage and borrowing base—as well as restrictions on investments in joint ventures and non-guarantor subsidiaries. A change in control would allow lenders to terminate the revolver and accelerate both facilities. Interest will be based on SOFR or a base rate plus applicable spreads tied to KB Home’s leverage.
The company concurrently terminated its previous revolving credit facility with Citibank with no early-termination penalty.
KB Home disclosed in an 8-K filing that on November 12, 2025 it entered into a new 1.2 billion dollar revolving credit facility with a syndicate of lenders led by Bank of America. The facility replaces the company’s prior 1.09 billion dollar revolver and matures on November 12, 2030. The commitment may be increased to as much as 1.7 billion dollars if additional lenders participate. Proceeds may be used for general corporate purposes.
The homebuilder also amended and restated its existing 360 million dollar senior unsecured term loan, extending its maturity to November 12, 2029.
Both the revolver and term loan include customary financial and operational covenants—covering tangible net worth, leverage, liquidity, interest coverage and borrowing base—as well as restrictions on investments in joint ventures and non-guarantor subsidiaries. A change in control would allow lenders to terminate the revolver and accelerate both facilities. Interest will be based on SOFR or a base rate plus applicable spreads tied to KB Home’s leverage.
The company concurrently terminated its previous revolving credit facility with Citibank with no early-termination penalty.
