KB Home said that it has begun a public offering of $265 million in senior notes, with proceeds being used for general corporate purposes and to retire old debt.

The offering for the notes, which pay 9.1 percent and will mature in 2017, is expected to close on July 30. They will replace around $250 million in senior notes due in 2011 paying 6-3/8 percent. Citi is acting as book-running manager for the new offering.

Shares of KB Home were down 14 cents, or less than 1 percent, to $15.86 in midday trading on the New York Stock Exchange. The offering was announced late Thursday.