<SEC-DOCUMENT>0000950123-11-059328.txt : 20110616
<SEC-HEADER>0000950123-11-059328.hdr.sgml : 20110616
<ACCEPTANCE-DATETIME>20110616060149
ACCESSION NUMBER:		0000950123-11-059328
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20110610
ITEM INFORMATION:		Entry into a Material Definitive Agreement
FILED AS OF DATE:		20110616
DATE AS OF CHANGE:		20110616

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			KB HOME
		CENTRAL INDEX KEY:			0000795266
		STANDARD INDUSTRIAL CLASSIFICATION:	OPERATIVE BUILDERS [1531]
		IRS NUMBER:				953666267
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1130

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-09195
		FILM NUMBER:		11914024

	BUSINESS ADDRESS:	
		STREET 1:		10990 WILSHIRE BLVD
		CITY:			LOS ANGELES
		STATE:			CA
		ZIP:			90024
		BUSINESS PHONE:		3102314000

	MAIL ADDRESS:	
		STREET 1:		10990 WILSHIRE BLVD
		CITY:			LOS ANGELES
		STATE:			CA
		ZIP:			90024

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	KAUFMAN & BROAD HOME CORP
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
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<TYPE>8-K
<SEQUENCE>1
<FILENAME>v59764e8vk.htm
<DESCRIPTION>FORM 8-K
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<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section&nbsp;13 OR 15 (d)&nbsp;of The Securities Exchange Act of 1934</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Date of Report: June&nbsp;10, 2011<BR>
(Date of earliest event reported)</B></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>KB HOME</B>
</DIV>

<DIV align="center" style="font-size: 10pt"><B>(Exact name of registrant as specified in charter)</B></DIV>


<DIV align="center">
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    <TD align="center" valign="top"><B>Delaware</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>1-9195</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>95-3666267</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top" nowrap>(State or other jurisdiction of incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap>(Commission File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap>(IRS Employer Identification No.)</TD>
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</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>10990 Wilshire Boulevard, Los Angeles, California 90024</B><BR>
(Address of principal executive offices)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Zip Code)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Registrant&#146;s telephone number, including area code: (310)&nbsp;231-4000</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Not Applicable</B><BR>
(Former name or former address, if changed since last report)</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Check the appropriate box below if the Form&nbsp;8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-family: Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-family: Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-family: Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-family: Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;1.01 Entry into a Material Definitive Agreement.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As previously reported, on February&nbsp;3, 2011, the U.S. Bankruptcy Court, District of Nevada entered
an order for relief on a Chapter&nbsp;11 involuntary bankruptcy petition filed against South Edge, LLC,
a Nevada limited liability company (&#147;South Edge&#148;), and appointed a trustee for South Edge. KB HOME
Nevada Inc., a wholly-owned subsidiary of KB Home (the &#147;Company&#148;), is a member of South Edge
together with unrelated homebuilders and a third-party property development firm. As a result of
the February&nbsp;3, 2011 court decision, and as previously reported, the Company considered it probable
that it would pay certain amounts to the administrative agent for lenders to South Edge (the
&#147;Administrative Agent&#148;) under a limited several repayment guaranty (the &#147;Springing Guaranty&#148;) that
the Company provided in connection with certain loans the lenders made to South Edge. Each of KB
HOME Nevada Inc., the other members of South Edge and their respective parent companies provided a
similar repayment guaranty to the Administrative Agent. As reported in the Company&#146;s Quarterly
Report on Form 10-Q for the quarterly period ending February&nbsp;28, 2011, the Company believed that
this matter would be resolved either through (a)&nbsp;a payment on the Springing Guaranty, resulting in
the Company&#146;s assumption of the lenders&#146; lien position with respect to the Company&#146;s share of land
owned by South Edge, or (b)&nbsp;a consensual plan of reorganization for South Edge of which the Company
would be one of several proponents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Effective June&nbsp;10, 2011, the Company and KB HOME Nevada Inc. became parties to a consensual
agreement among the Administrative Agent, several of the lenders to South Edge, and certain of the
other South Edge members and their respective parent companies (together with the Company and KB
HOME Nevada Inc., the &#147;Participating Members&#148;). The Chapter&nbsp;11 trustee for South Edge has
expressed its consent to the agreement. The other Participating Members are Coleman-Toll Limited
Partnership, Toll Brothers, Inc., Pardee Homes of Nevada, Weyerhaeuser Real Estate Company, Beazer
Homes Holding Corp., and Beazer Homes USA, Inc. As of the date of this report, certain members of
South Edge, including Meritage Homes of Nevada, Inc. and Focus South Group, LLC, are not party to
the agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Each of the parties has agreed to use commercially reasonable efforts to support a consensual plan
of reorganization for South Edge (the &#147;Plan&#148;), to obtain bankruptcy court approval of a disclosure
statement that will accompany the Plan, to obtain bankruptcy court confirmation of the Plan
following, and subject to, the bankruptcy court&#146;s approval of a disclosure statement, to obtain the
requisite support of the South Edge lenders to the Plan, and to consummate the Plan promptly after
confirmation, in each case by certain specified dates. Under the agreement, the effective date of
the Plan following its confirmation is to occur on or before November&nbsp;30, 2011, though it may be
extended by the Participating Members and the Administrative Agent jointly by up to 30&nbsp;days,
depending on the date of Plan confirmation. No disclosure statement for the Plan has been approved
by the bankruptcy court at this time, and nothing herein should be construed as a solicitation of
any vote on the Plan by creditors of or equity holders in South Edge.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Pursuant to the terms of the proposed Plan, the Company would pay to the South Edge lenders an
amount between approximately $214&nbsp;million and $225&nbsp;million on the effective date of the Plan. The
Company has deposited approximately $21&nbsp;million of this amount in an escrow account. The exact sum
the Company would pay to the South Edge lenders depends on the outcome of proceedings the Chapter
11 trustee for South Edge has commenced against, among others, a South Edge member that is not a
Participating Member in order to determine the amount of pledged infrastructure development funds
that can be applied to the South Edge debt. In addition to this payment to the South Edge lenders,
the Company would be responsible for certain fees, expenses and charges and for certain allowed
general unsecured claims, and would receive the benefit of potential contributions and recoveries
that would, in the aggregate, affect the Company&#146;s cost related to the Plan. Taking all of this
into account, the Company currently estimates that its net obligation related to the proposed Plan
is between $216&nbsp;million and $240&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If the proposed Plan becomes effective, the Company anticipates that it would (a)&nbsp;acquire its share
of the land owned by South Edge (amounting to at least approximately 65% of the land and as much as
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">approximately 68%) as a result of a bankruptcy court-approved disposition of the land to a newly
created entity in which the Company would expect to be a part owner, and (b)&nbsp;without further
payment, satisfy or assume the respective liens of the Administrative Agent and the South Edge
lenders on the land. In addition, if the Plan becomes effective, the Company anticipates that all
South Edge-related claims, potential guarantee obligations (including the Company&#146;s potential
Springing Guaranty obligation), and litigation between the Administrative Agent (on behalf of
itself and the South Edge lenders) and the Participating Members would be resolved, although
lenders holding less than 8% ownership in the loans made to South Edge that are not currently
expected to consent to the Plan may assert certain claims against the Company, which claims the
Company would vigorously dispute.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The agreement is subject to bankruptcy court approval and may be terminated by the Administrative
Agent or the Participating Members upon the occurrence of certain specified events, including a
failure to meet the specified dates on which the above-described activities in support of the Plan
are to occur.
</DIV>







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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 16pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date: June&nbsp;15, 2011

</DIV>

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    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">KB Home<BR><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ BRIAN J. WORAM
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Brian J. Woram&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Executive Vice President, General Counsel and Secretary&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
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