Hovnanian Enterprises, Inc. (NYSE: HOV) has announced its plans to offer $450 million aggregate principal amount of senior notes due 2031 and $450 million aggregate principal amount of senior notes due 2033 through its wholly owned subsidiary, K. Hovnanian Enterprises, Inc. The notes will be guaranteed by the company and most of its subsidiaries.
The net proceeds from the offering of the notes will be used for several purposes: 1. Funding the redemption of the entire outstanding principal amount of its 8.0% senior secured 1.125 lien notes due 2028 and the entire outstanding principal amount of its 11.75% senior secured 1.25 lien notes due 2029. 2. Repaying in full all outstanding loans under its senior secured 1.75 lien term loan facility due 2028. 3. Paying all fees and expenses related to the redemption and the offering of the notes.
It is important to note that the notes have not been registered under the securities laws and may not be offered or sold in the United States, or for the benefit of U.S. persons, except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the securities laws.
Hovnanian Enterprises, Inc., founded in 1959, is one of the nation’s largest homebuilders with operations in several states. The company's homes are marketed and sold under the trade name K. Hovnanian Homes, and its subsidiaries develop K. Hovnanian’s Four Seasons communities, making the company one of the nation’s largest builders of active lifestyle communities. As a result of these announcements, the company's shares have moved -4.21% on the market, and are now trading at a price of $147.24. For more information, read the company's full 8-K submission here.
