KB Home (KBH), the Los Angeles-based house builder, said it would sell unsecured debt to fund an offer to buy back as much as $150 million of bonds.

The company is seeking to repurchase most of its $193.7 million of 5.75 percent notes due February 2014 for as much as 104 cents on the dollar, KB Home said today in a statement. It didn’t say when it would sell the new bonds.

KB Home has about $1.58 billion (KBH) of bonds outstanding, according to data compiled by Bloomberg. Home sales at the company dwindled to 5,812 last year from a record 32,124 in fiscal 2006, according to regulatory filings.

To contact the reporter on this story: Zeke Faux in New York at zfaux@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net