KB Home Announces Public Offering of Senior Bonds

LOS ANGELES–(BUSINESS WIRE)–KB Home (NYSE: KBH) today announced the initiation of a public offering in the aggregate principal amount of $350.0 million of senior unsecured notes due 2030. Citigroup Global Markets Inc., BofA Securities, Inc., BNP Paribas Securities Corp. , Fifth Third Securities, Inc., JP Morgan Securities LLC and Wells Fargo Securities, LLC are acting as bookrunners for this offering.

The Senior Notes will be guaranteed on an unsecured basis by the subsidiaries of KB Home that have guaranteed the outstanding Senior Notes of KB Home. KB Home intends to use the net proceeds of this offering together with available cash, if necessary, to redeem its outstanding 7.5% Senior Notes due 2022, by redemption in accordance with the terms of redemption options specified for such notes, purchase or redemption at maturity, and the remaining net proceeds, if any, of this offering for general corporate purposes.

The offering of senior notes is being made pursuant to an existing shelf registration statement that KB Home has previously filed with the Securities and Exchange Commission (“SEC”). A copy of the prospectus supplement and accompanying prospectus describing the senior note offering, when available, may be obtained by visiting EDGAR on the SEC’s website at www.sec.gov or by contacting Citigroup at: c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, email: [email protected] or toll free at 1-800-831-9146, or BofA Securities at the following address: BofA Securities, NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte, NC 28255-0001, Attn: Prospectus Department, email: [email protected], or BNP PARIBAS at at the following address: Attn: Syndicate Desk, 787 Seventh Avenue, New York, NY 10019, email: [email protected] or call toll-free 1-800- 854-5674, or Fifth Third Securities, 38 Fountain Square Plaza, Cincinnati, Ohio 45263, toll free at 1-866-531-5353, or JP Morgan Securities LLC at: c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by calling (866)-803-9204, or Wells Fargo Securities at: Attn: WFS Customer Service, 608 2nd Avenue South, Suite 1000, Minnea polis, MN 55402, email: [email protected] or toll free at 1-800-645-3751.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, and there will be no sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. prior to registration or qualification under the securities laws of such jurisdiction. The offering of Senior Notes is being made only by means of the Prospectus Supplement and the accompanying Prospectus. This press release does not constitute a redemption notice with respect to KB Home’s 7.5% senior bonds due 2022.

About KB Home

KB Home is one of the largest and most recognized home builders in the United States and has built over 655,000 quality homes in our 65 year history. Today, KB Home operates in 47 markets coast to coast. What sets KB Home apart is the exceptional customization we offer our buyers – from first time buyers to experienced buyers – allowing them to make their home uniquely their own, at a price that fits their budget. . As a leader in building energy-efficient homes, KB Home was the first builder to make every home it builds ENERGY STAR®® certified, an energy performance standard achieved by less than 10% of new homes in America, and has built more ENERGY STAR certified homes than any other builder. An energy-efficient KB home helps lower the cost of ownership and is designed to be healthier, more comfortable and better for the environment than new homes without certification. We build strong, personal relationships with our clients so they have a true partner in the home buying process. As a result, we have the distinction of being the highest-ranked national homebuilder by customers in third-party buyer satisfaction surveys.

Forward-Looking Statements and Cautions

Certain matters discussed in this press release, including any statements that are predictive in nature or that relate to future market and economic conditions, business and prospects, our future financial and operating performance, or our future actions and expected results are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations and projections about future events and are not guarantees of future performance. We do not have a specific policy or intention to update or revise any forward-looking statements. Actual events and results may differ materially from those expressed or anticipated in the forward-looking statements due to a number of factors. The most important risk factors that could cause our actual performance and future events and actions to differ materially from these forward-looking statements include, but are not limited to, the following: general economic, and Business; population growth, household formation and demographic trends; capital, credit and capital market conditions; our ability to access external sources of financing and raise capital through the issuance of common stock, debt or other securities, and/or project financing, on favorable terms; executing any redemption of securities as authorized by our board of directors; the costs and availability of materials and trade, including building materials, particularly wood, and appliances; consumer and producer price inflation; changes in interest rates; our level of indebtedness, including our debt-to-equity ratio, and our ability to adjust our level of indebtedness and our maturity; our compliance with the terms of our revolving credit facility; the volatility of the market price of our common stock; home sales prices, including our home sales prices, are rising at a faster rate than consumer incomes; weak or declining consumer confidence, either generally or specifically with respect to buying a home; competition from other sellers of new and resale homes; weather events, major natural disasters and other climatic and environmental factors; any failure of legislators to agree on a budget or appropriation bill to fund federal government operations, and the reactions of financial markets and businesses to such failure; government actions, policies, programs and regulations aimed at or affecting the housing market (including the tax advantages associated with buying and owning a home, and the standards, fees and size limits applicable to the purchasing or insuring mortgages by government-sponsored companies and government agencies), the home building industry or construction activities; changes in existing tax laws or applicable corporate tax rates, including those resulting from regulatory guidance and interpretations issued in this regard; changes in United States trade policies, including the imposition of tariffs and duties on residential building materials and products, and related trade disputes with other countries and retaliatory actions taken by d ‘other countries ; disruptions to global and regional trade flows, economic activity and supply chains due to the military conflict in Ukraine, including those resulting from sweeping sanctions that the United States and other countries have imposed or could impose on business sectors, financial organizations, individuals and raw materials, the impact of which may, among other things, increase our operating costs, exacerbate shortages of building materials and household appliances and/or reduce our income and profits; the adoption of new or amended financial accounting standards and related guidance and/or interpretations; the availability and cost of land in desirable areas and our ability to timely develop acquired parcels of land and open new host communities; our experience with warranty claims on previously delivered homes and actual warranty costs incurred; costs and/or expenses arising from regulatory compliance requirements or from judicial, arbitral or regulatory proceedings, investigations, claims or settlements, including adverse results in such matters resulting in actual or potential damages, penalties, fines or other direct or indirect payments, or injunctions, consent decrees or other voluntary or involuntary restrictions or adjustments to our business operations or practices that go beyond our current expectations and/or charges; our ability to use/realize the net deferred tax assets we have generated; our ability to successfully implement our current and planned strategies and initiatives related to our product, geographic and market positioning, gain market share and expand in our served markets and enter new markets; our operational and investment focus on the California markets; consumer interest in our new communities and products, particularly first-time home buyers and high-income consumers; our ability to generate orders and convert our backlog into door-to-door deliveries and revenue, particularly in key California markets; our ability to successfully implement our business strategies and achieve all related financial and operational objectives, including those discussed in this release or in other public documents, presentations or disclosures; the volatility of income tax expense associated with stock-based compensation; the ability of our homebuyers to obtain residential mortgages and mortgage banking; the performance of mortgage lenders to our home buyers; the performance of KBHS Home Loans LLC, our mortgage banking joint venture; information technology failures and data security breaches; an epidemic or pandemic (such as the outbreak and global spread of COVID-19), and the control measures that governments, agencies, law enforcement and/or international health authorities (including China), federal, state, and local implements to address it, which may (as with COVID-19) precipitate or exacerbate one or more of the above-mentioned risks and/or other risks, and disrupt or us significantly prevent us from operating our business in the ordinary course for an extended period; and other events beyond our control. Please see our periodic reports and other filings with the Securities and Exchange Commission for a further discussion of these and other risks and uncertainties applicable to our business.

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