Free Writing Prospectus - Filing under Securities Act Rules 163/433

Filed Pursuant to Rule 433
Registration No. 333-154432
July 23, 2009
PRICING TERM SHEET
9.100% Senior Notes due 2017
     
Issuer:
  KB Home
 
   
Security:
   9.100% Senior Notes due 2017
 
   
Size:
   $265,000,000
 
   
Maturity Date:
  September 15, 2017
 
   
Coupon:
   9.100%
 
   
Interest Payment Dates:
  September 15 and March 15, commencing March 15, 2010
 
   
Price to Public:
  Variable Price Re-offer
 
   
Benchmark Treasury:
  3.125% due May 15, 2019
 
   
Benchmark Treasury Yield:
  3.695%
 
   
Spread to Benchmark Treasury:
  +575.5 basis points
 
   
Net Price to KB Home:
  96.639%
 
   
Net Proceeds to KB Home:
  $256,093,350
 
   
Make-whole call:
  At any time at a discount rate of T+50 basis points
 
   
Change of Control Offer:
  101% of principal amount plus accrued interest
 
   
Expected Settlement Date:
  July 30, 2009 (T+5)
 
   
CUSIP:
  48666K AP4
 
   
Anticipated Ratings:
  B1 by Moody’s Investors Service, Inc., BB- by Standard & Poor’s Ratings Services and BB- by Fitch Ratings, each with a negative outlook
 
   
Sole Bookrunning Manager:
  Citigroup Global Markets Inc.

1

 

     
Co-Managers:
  Barclays Capital Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc.
Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.
The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering.
You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling Citigroup Global Markets Inc. toll-free at 1-877-858-5407.

2