KB Home, Los Angeles (NYSE: KBH) yesteday announced it completed an amendment to its unsecured revolving credit facility to increase the borrowing availability to $500 million from $275 million, with a $250 million letter of credit sublimit, and extend the maturity date to July 2021from August 2019.
The amended credit facility also contains an accordion feature under which the borrowing availability can be further increased to $600 million, subject to additional lender commitments.
“We are taking another important step forward in executing on our returns-focused growth plan, by increasing the capacity of our credit facility. With this added liquidity and financial flexibility, we expect to further improve our asset efficiency, as we productively deploy excess cash and utilize the credit facility to meet our short-term capital needs,” said Jeffrey Mezger, chairman, president and CEO. “We appreciate the support from our banking partners, and the confidence in the strength of our business that the commitment to a substantially larger credit facility reflects.”
