Hovnanian Enterprises, Inc. has announced its intention to offer $450 million aggregate principal amount of senior notes due 2031 and $450 million aggregate principal amount of senior notes due 2033. The purpose of this offering is to use the net proceeds to fund the redemption of existing secured notes, repay outstanding loans under its senior secured term loan facility, and pay related fees and expenses.
The company's wholly owned subsidiary, K. Hovnanian Enterprises, Inc., will guarantee the notes, which have not been registered under the Securities Act of 1933. The offering is aimed at qualified institutional buyers and certain persons in offshore transactions.
As of the most recent financial period, Hovnanian Enterprises, Inc. reported a total revenue of $2.2 billion, representing a 10% increase from the previous period. The net income for the same period stood at $35 million, exhibiting a significant improvement from a net loss of $8 million in the previous period.
In terms of liquidity, the company reported a cash balance of $180 million, a 15% decrease from the prior period. Additionally, the company's total debt decreased by 5% to $1.5 billion compared to the previous period.
Hovnanian Enterprises, Inc. operates in 13 states and is one of the nation’s largest homebuilders. The company's homes are marketed and sold under the trade name K. Hovnanian Homes. Furthermore, the company's subsidiaries develop K. Hovnanian’s Four Seasons communities, making it one of the nation’s largest builders of active lifestyle communities. As a result of these announcements, the company's shares have moved 0.2% on the market, and are now trading at a price of $147.5336. For more information, read the company's full 8-K submission here.
