Citigroup Lands Co-Lead In KB Home Deal

Citigroup Global Markets worked its way into a co-lead role on KB Home's new $1.5 billion revolver by keeping in close contact with the company over the past several years, said Kelly Masuda, treasurer for KB Home.

  • 02 Dec 2005
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Citigroup Global Markets worked its way into a co-lead role on KB Home's new $1.5 billion revolver by keeping in close contact with the company over the past several years, said Kelly Masuda, treasurer for KB Home. Citi had been part of the syndicate on a Banc of America Securities-led $1 billion, but it moved into a lead spot with B of A by keeping in touch. "They had a calling effort with us," Masuda said. "They have talked to us a lot over the years." He added that Citigroup is dedicated to the homebuilder's market and has a good reputation in the field.

Cheap pricing prompted KB Home to enter a new credit facility. The pricing on the revolver, which matures in five years and replaces the homebuilder's existing revolver, is adjusted every quarter based on the company's credit ratings and leverage. The current spread on the revolver is LIBOR plus 87.5 basis points. The previous facility, which was scheduled to mature in 2007 and was based on a similar pricing grid, was priced at LIBOR plus 130 basis points at the time of closing.

There are 30 banks in the new facility, compared with 22 banks in the previous one. Lenders include Calyon, Citicorp North America, Wachovia Bank, The Royal Bank of Scotland and Barclays Bank.

  • 02 Dec 2005

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 BNP Paribas 10,542 20 17.55
2 Bank of America Merrill Lynch (BAML) 6,103 21 10.16
3 Citi 5,130 13 8.54
4 JP Morgan 4,681 6 7.79
5 Morgan Stanley 4,137 11 6.89

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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  • Today
1 Citi 79,222.71 230 11.49%
2 Bank of America Merrill Lynch 65,088.22 185 9.44%
3 Wells Fargo Securities 55,825.35 161 8.10%
4 JPMorgan 52,873.25 155 7.67%
5 Credit Suisse 44,197.08 113 6.41%