KB Home, Los Angeles (NYSE: KBH) Monday announced it repaid the remaining $165 million in aggregate principal amount of its 9.100% Senior Notes due 2017 at their maturity on September 15, 2017. The company used internally generated cash to retire the notes.
“We are pleased to have surpassed the initial debt reduction goal we shared at our investor conference last year. By repaying the full amount of our 2017 senior notes with cash flow from operations, including the partial redemption of the notes we completed earlier this year, we exceeded one of the milestones of our three-year returns-focused growth plan – reducing our debt balance by a minimum of $250 million,” said Jeffrey Mezger, chairman, president and CEO.
He continued, “Eliminating this debt, which was our most expensive, will allow us to meaningfully reduce our interest incurred, helping to support future improvement in our gross margins. Overall, we are confident in our ability to make continued progress on the targets under our returns-focused growth plan, and increase long-term stockholder value.”
